Ultimately it's up to your comfort level. 

The good thing is BRRR's really work at any level.

Additionally, I'll be debt-free by then.I currently live in a suburb outside of Denver with my parents where real estate is quite expensive for entry-level homes.

My issue is not so much the cost of the umbrella policy, but finding insurers that will provide the level of coverage we desire (they believe we are too high risk to provide us the coverage that we desire). 

Your labor is not accounted for unless you are paying yourself as a contractor and picking up that income at the individual level.  

@Khaled Seirafi it depends on the occupancy level. 1 vacant out of 25 (96%) almost all will, 1 out of 5, significantly fewer.

Ft.Total price $600K @5% downOnly appliances included, no furniture included. 2 floors, with 2 Beds on main level and master on 2nd level.

I would've like to make my case of being grandfathered in for the simple fact that the previous owner (whom is close to 80 years of age and self managed as Owner Occupied for over 35 years) had tried in the past:  1st - To reduce taxes because it's listed as a 3 & 2 but then the tax site has it as 6+ and when the old man had them visit the buildings they seen 7 mailboxes that USPS installed( so he decided to stay shut and not pursue it) 2nd- The 2 family already had 3 gas meters and even a fire escape because the 3rd floor studio apartment only has access thru back door.The front building has 4 gas meters, 1st floor, 2nd floor, 3rd floor and one for the front Studio apartment (which is like a basement apartment) but its street level with main entrance off sidewalk. 

I was replacing carpet and ran into major issues with the subfloor not being level/flat, so that's also something to consider if your situation is similar.

When it flooded before it was more like 18IN lol staring at water just below the level of my house was concerning to put it lightly current equity is 100k.Thank You all soooooooooooo much for your advice