Basically, these loans use the rents you receive on the property and divide them by the new loan PITI to receive a ratio.

Cindy,If the duplex is owner occupied there are dozens of quality Insurance companies that write a Homeowners policy for an owner occupied 2 family. 

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.

I am intimately involved in the development of all onsite operations, hiring, and policy implementation.

.- PITI, sewer/water taxes = $842.00/month- 1,008 sq. feet + 249 sq. feet on lower-level. 2 beds, 1.5 baths, fully finished lower, fenced yard, 4-car off-street parking, dead-end street, 15 minutes from route 495 to Boston, 15 minutes into Providence.- Electric heat.

Based on my contractor estimates, I'm roughly looking at around $6.5k The property is already rent ready, save for a couple minor things (new man door on the garage, snake some drains, etc).I own a handful of properties but am not an expert when it comes to giving information, but here are the numbers I'm working with:Purchase Price: $55,000Cash In: $12,000 (15% down payment + minor rent ready repairs + misc.)Rent: $800-900/monthExpenses: $538/month (PITI + $120 set aside for maintenance, vacancies, etc.)Net Cash Flow: $262-$362/mo. (26-36% CoC Return)The cons that I'm hung up on are (1) that the home is certainly not being purchased at 75% ARV or anything like that, but then again the house itself save for the two items I mentioned are in great condition; (2) comps in this particular neighborhood are nearly impossible to place... a few years ago these houses sold for $4,000-7,000 each, but the real estate boom has certainly brought some change.

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.

Believe it or not, though, my interest-only loan at 11.25% is better than what I was quoted with a PITI loan at 8.125%, so I’m going to ride this loan out full-term.I’m also considering room sharing with PadSplit.

Do you mean open a policy and then take out against my policy for the funding of purchase versus going with a conventional loan?

@Jordan Moorhead @Ryan Kelly@Joe Scaparra One of the metrics I have mentioned in prior posts is the actual PITI cost to the buyer may forecast a market bottom.