I have long wanted to hold rental properties as retirement assets and to supplement my income from my full time job.

I have long wanted to hold rental properties as retirement assets and to supplement my income from my full time job.

-we were quoted some private flood insurance around ~$1800 for what we thought was adequate coverage for all buildings, underwrote that number, and moved onA little further along we learn the flood zoning is zone AE, private flood insurance isn't much of a thing for an AE zone, and FEMA flood insurance is expensive. 

Liability wise you should consult a lawyer, but it may be as simple as a waiver and proper insurance coverage.

I see all these younger investors when you ask how much do you need and your done.. and many will answer 7 to 10k a month.. but as you age out health insurance ( if you want the best like we do) is going to take a huge bite out of that.our medicare and supplemental is right at 2k a month for both of us total so If we though we could live on 10k well thats really 8K..

That’s what Debt Service Coverage Ratio (DSCR) loans are used for.

If you were to lose insurance coverage your loan could be called.

I've seen a lot of Allstate rental properties with ACV or market value coverage rather than Replacement cost and other tricks to reduce coverage levels.  

Income Potential: Rental income from real estate can provide a steady stream of passive income, which can be particularly attractive for retirement planning or supplementing other income sources.While your family member raised valid concerns about the risks and expenses associated with real estate investing, it's important to weigh these against the potential benefits and your own investment goals.

You do need to tell your homeowners insurance that you are a landlord and are leasing out the other half of the property so they can write the appropriate liability coverages for you.