In case if the units stay unrented, the borrower should have enough cash reserve with him to pay Principal, interest, insurance and taxes for 6 months.

Account Closed I am a big rural fan, and fortunately it doesn't seem to matter what state you're looking at, rural real estate markets will always be pretty affordable and stable.

All PM's carry E&O insurance to protect you.

I feel that it may not cash flow well since it seems like my payment is quite higher than I initially expected.Example: 2 bed 1 bath in 93728 Asking price $125,000Closing costs estimated: $7,200-$8000 (includes interest, insurance, and taxes for 1 year)20% down paymentTotal due upon close: $27,200-$28000Thanks for any advice or feedback!

Make sure and carry adequate insurance with high liability limits no matter what your situation.A final thought.....and I don't have first hand experience in getting sued but knowing others who have (in Florida), it is very unlikely that a judge will force you to liquidate a property, especially one encumbered by a mortgage, to settle a lawsuit. 

That was years before Obamacare and that was one way I used to deduct my medical insurance and co pays.

Does homeowners insurance cover leaks from one apartment into another?

But if you are buying and holding more properties (or using the money for more long term items) then having a stable, forecastable interest rate is more important. 

Instead of purchasing a beat up property and having a turn key company manage the rehab (some offer properties already "done up") you can purchase a property that is already stable and looking for a new owner.

Who is everyone using for insurance?