We both manage our own units, and just pay a master condo insurance for all exteriors/yard/fence together.

The mortgage including the property taxes and insurance is approximately $1250 now but it's 30/5ARM so the rate will change in six months. 

It appeared he may have dug to close to the house as the floor now has a small slope in the direction where the digging took place, additionally some separation of the flooring, and a door out of plumb(will shut but wont lock completely).

We add in insurance, property management, CapEx, maintenance/repairs, vacancy and any other potential expenses based on the property (refuse, water, etc. fo MF and lawn care/pest control for SFR).

@John Roeder will they do that for a cash value life insurance policy?

Credit default insurance and a home warranty if your cash flow will allow it will allow a property to survive those stress tests

Here is some information on the duplex:Basic Info: 1941, 3B 1.5Bath, 2 BD 1 BathPurchase Price: 151KDP: 44K Rents: 22K AnnualMortgage/Taxes/Insurance: 13.5K AnnaulMaintenance/Other Costs: 2.5K Cash Flow: $5K/year The house is in need of some renovations: pretty much all new windows, a furnace replaced, siding in the near future (wood)  Is this worth it for a first year investment?

Then hope nature takes out the tree and insurance covers it.

It has a separate bathroom, shower, the plumbing and electric are up and running, It has a separate entrance too.I don't have permits to use it as a bedroom. 

The downside of an FHA is that upfront, you will finance 1.75% of the base loan amount in the form of financed mortgage insurance.