This helps safeguard your transaction and you need a title insurance policy protecting your loan as well.

The second pillar is a good insurance policy as that cover the majority of your exposure.

Property 1100 sqft, 3bed 2 bath in Spring Area , is making $1400 in rent20% down = 38kLoan Origination, Closing cost = 5kLoan is 7.8 % ( investment interest is little higher ) out of 152k ( 190-138 ) = $1100 / month ( use mortgage calculator on google to calculate )Now add insurance 1200 / yearTaxes 3300 / yearProperty manager 1200 / yearThis is additional $475 per month, bringing you to a total cost of $1575 this is without repair reserves.

It depends on how much you want to spend as well and what rental strategy you want to use.

Remember that guy on here whose strategy was renting abandoned property and going for adverse possession to take ownership?

@Bria Johnson Cold calling is fine and all, but, pursuing only one such marketing strategy won't get you far in the long run.

This is for the very simple consideration that you would need to insure yourself as a property manager and as a landlord.

My clients had a home under contract in a HOA last year and they wanted to have the medium term rental strategy as a backup for the home.

It's a testament to the power of experience, relationships, and sound financial strategies in building a successful investment portfolio.The plan?

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).