I believe that the advanced or top tier title insurance policies would include coverage for violations like the ones mentioned in the original post here...though Im not positive since I only ever get the basic coverage.

Call a bunch of companies and go with who gives you the best quote and coverage. 

Run a debt service coverage ratio calculation with that data and a 1.25x-1.30x ratio typically makes me feel good.

However that said, there are coverage limitations and if a person's claim bumps into those limits, then a claim may not be paid.

Here is my break down given your numbers-170k 25% down 4.65% interest fixed over 30 yrs.42,500 down; loan for 127,500taxes 800 annual, prop manager 10%= 2400($1k/unit) 2k/mo x 12= 24k gross24k - (800tax, 2400 PropMan,= 3200)= 20,800 NOI20,800/170k= 12.2% Cap rateLoan Constant 6.19%Spread 6.01%Annual Cash on Cash return 30.38%Annual debt service= $7889.24Break Even Ratio= 46.2%Debt Coverage Ratio= 2.64Actual Return after all expenses= $12,910.76/yr(900/unit) 1800/mo x 12= 21600800 tax, prop manager 2160/yr= 2960 expenses18640 NOICap Rate 10.9%Loan Constant 6.19%Spread 4.71%Annual Cash on Cash return 10.96%Annual debt service= $7889.24Break Even Ratio= 50.2%Debt Coverage Ratio= 2.36Actual Return after all expenses= $10750.76Not factored into this is any repairs (but given the remodel it should be nominal) and vacancy.

Our clients are looking to invest in properties that they know will be occupied most of the year (our current 52-week rolling occupancy rate is 96.1%) and will not end up costing an arm and a leg in maintenance costs (our current maintenance rate is only 2.6% due to our comprehensive refurb process).

Chuck Williams commercial lending with look for a sufficient debt service coverage ratio to quality your deal.

The subject property will need to meet a debt service coverage ratio minimum, typically between 1.20x-1.40x - essentially meaning the property needs to cash flow between $1.20-1.40 (depending on which bank) for every dollar of debt the property carriers.

If you're planning to pull cash out of your existing property I would want to see a debt service coverage ratio of 1.30x.

We are planning on using air bnb which also provides $1 million liability coverage.