Do a standard screening weighing heavily on there credit report.

Yeah, the housing is not up to the standards that you or I would live in, but you always have two choices:  Upgrade and charge more, or don't and charge less. 

Qualification for a Portfolio loan would be based on how cash-flowing the property is, so make sure to have a solid idea of gross rents received, along with the expenses for the property (including taxes and insurance, maintenance, landscaping, any landlord-paid utilities, etc.). 

Here's a summary of the economics.They purchased the property for $280,000 in 2004.The loan balance is about $178k.Monthly principal and interest payment is about $1,265 with $709 currently going to interestProperty taxes are $4,116 annually and insurance is $1,000.Currently the house is vacant for the sale so there's no rental income.Therefore, the monthly burn is -$1,135 (ouch).For the sale:Property was originally listed at $335k and they received 0 offers at that price. 

What type of insurance should I buy under this condition?

, but in that open house-- we only got 3 applications-- a lot of people didn't realize we were serious about our qualifications/standards.

I also suggest touring as many open houses in the area as possible to figure your finishout standards for the area.

But regardless I expect a standard of quality

The insurance company is going to rebuild all the units due to the amount of damage, but there has been some hold ups with the county due to permitting, changes in codes and such that has delayed the rebuild process greatly.

I am still learning the ropes of real estate investing, currently i have PM that manage all of my rentals, but i have been looking at trying out self managing recently after listening to some podcast and readings. One...