Insurance costs are not notably higher.

Make sure you list the lender as such on the insurance policy so in the event of a fire or other disaster they get their money first.  

Insurance, 3.

@Tchaka Owen It's advisable that a taxpayer carry adequate and appropriate insurance for the business line. 

Let's say I put 20% down on a 350k townhouse -- gives me no PMI payment but have to pay mortgage, insurance, taxes, set aside money for maintenance, vacancy, etc.

All we were responsible for was tax and insurance, which is about $100 per month combined, so we were looking at a net income of $400 per month.

It is now producing a $900/month cashflow as a medium term insurance rental.

Will having body shop next door affect house insurance premium?

: Lower Your Small Business Taxes and Tax Savvy for Small Business: A Complete Tax Strategy Guide Twentieth Editionlegal and insurance - Every Landlord's Property Protection Guide: 10 Ways to Cut Your Risk Now (book w/ CD-Rom) and supplement with Every Landlord's Legal Guide (generally speaking Nolo has a good collection of books)property management - an excellent resource is The Book on Managing Rental Properties: A Proven System for Finding, Screening, and Managing Tenants With Fewer Headaches and Maximum Profitentity start and maintenace - Garrett Sutton's Start Your Own Corporation: Why the Rich Own Their Own Companies and Everyone Else Works for Them (Rich Dad Advisors)  and Run Your Own Corporation: How to Legally Operate and Properly Maintain Your Company Into the FutureAnd here is a set of questions to help you judge if you maintain your corporate well:How well have you separated yourself from your business?

Then look more deeply into rental rates for each, how taxes, hoa's and insurance differ etc. to get a better understanding of where your dollars can go the furtherest.