As far as protection, an umbrella policy can be sufficient for protection, but you'd want to talk this over with an insurance agent and probably a lawyer as well as I am neither of these things.

Insurance, tax, water, electric, garbage.$7,000 maintenance last year $5,000 of it from a roof repair.I think for this complex I will need to put down 35%, which I have saved up, but it's pretty much everything I have saved up.If I put in a 5% vacancy, and $3000 annual maintenance.

The lender wants me to insure the house for Replacement cost which is 361K...

Any difference who I use to get the title insurance? 

I have been told by several people in Atlantic city (real estate agent, home owners other investors) that in NJ at closing you only have to pay a quarter of your taxes, home owners insurance and flood insurance upfront.

Ensure you include all of the expense calculations when number crunching (property management, vacancies, maintenance, capital expenditures, property taxes, and insurance).

If they can afford the utilities and food, Take out an insurance policy on both of them.

In the case of prepaids, that's your money so it will either go toward your legitimate expenses (taxes and insurance) or you will get it back.In your example the lender fees are the origination fee and maybe the closing costs.

@Abraham AndersonHi Abraham,I would contact Kelly Thomas, our insurance agent and pose the question to him.

If you can rent it for $800 a month, that gives you plenty of room for expenses (taxes, insurance, maintenance, cap ex, prop management, vacancy) and will probably give you a positive cash flow of a couple hundred bucks a month.