So for this circumstance @Michael Key will be able to qualify, because he doesn't own a home in Florida.

Do you think MI had overpriced the house, or was there outlying circumstances with that particular house?  

I imagine they will act in their own self-interest, no matter the circumstances.

Estimated Expenses: $2,800 (50%) Not including mortgage paymentVacancy= $560 (10%) Cap Ex= $560 (10%)Management= $560 (10%) Taxes= $224 (4%) Based on 2016 taxesRepairs= $280 (5%)Insurance= $336 (6%) Hazard - Not in flood zoneLawn/Snow Maintenance= $84 (1.5%)Unforeseen Expenses= $196 (3.5%)I'm trying to come up with creative financing.

Under the circumstances I would immediately raise the rent to full market, if you are allowed, and inform the tenants handlers.

  ( law changed jan 1)  we thought they were kidding LOL. now in our area we can afford this type of thing as there is big equity in many homes or big enough to cover these unforeseen things.were I see this as potential disaster to the RE values of a community. 

And in very rare circumstances would a tenant supply their own appliances.  

Due to the higher cost and difficulty of buying through an LLC, I think I will probably just go the insurance only route for now and move it into an LLC later as circumstances change. 

However, I would be lenient depending on the circumstance and do what is necessary to get it resolved correctly.NOTICE OF DEFECT:Lessee agrees to notify the Lessor or his agent, in writing, of any defects in, or complaints about the leased premises including any and all plumbing leaks and failed caulking around tub.

I hope to someday have the skill to handle REI half as well as you guys have, especially in the circumstances.