They will take 75% of the lease amount and deduct monthly costs ($2205 + 417 + property taxes and insurance if not included in the mortgage). 

Standard paperwork you know and love, and one spreadsheet that has each property in a row and the particulars (loan balance, rent, 2nd mortgage(s), etc) in the columns.

home insurance declaration says my name as "additional interest" then what is difference between "additional interest" and "mortgagee/payee loss"also can somebody please advice me attorney for the same in New Jersey.ThanksTag Private lending, bayonne, newark, union, jersey city, union, edison, new jersey

If we assume (since you're doing FHA) that you're making a 3.5% down payment on a $250k property with mortgage interest of 5% (not sure what the current rate is, that's just a guess) you'd have a mortgage payment of $1,295.08 then add in PMI, taxes, and insurance and you're probably in the ballpark of $1,950/month.

Do your numbers include: vacancies, repairs, make readies, prop mgt, good insurance, etc..That is a small margin and will probably be negative once all costs are taken into account.

Which of course why a title report without anyone willing to issue title insurance holds zero value.

I paid the taxes, insurance, utilities, landscaping, etc.

Is that the standard practice?

You need actual hard fast numbers for:a - Existing debt  ("...could be anywhere between $100k-$120k..." is useless info)b - Rehab needed  ("...gonna need at least another 15-20k..." is also useless)c - ARV  ("The ARV is about $166k.." again, useless) d - Rent (unknown, but critical to analyze for a rental)e - taxes and insurance as a rental (unknown, but critical to analyze for a rental)f - cash you have to work withMy recommendation would be to get the above information as exact as you can...or, pass on the house. 

We do have a mortgage so insurance money goes to the lender which then does inspections to release the money.If it's still a desirable area it will still rent post flood.