You need proper coverage with STR, windstorm and other coverages outside of and in addition to whatever AirBnB, VRBO and the like tell you they’ll give you.

These loans can be DSCR (debt service coverage ratio) where you are qualifying solely based on cash flow, bank statement loans, asset depletion, or asset qualifying.

Curious why peoples opinions are on maintaining full coverage (with Lower cash flow) vs driving down your coverage to improve cash flow.

Joseph,Assuming your investment location is near Baton Rouge, LA, and the limited number of carriers wanting to write coverage in Southern Louisiana, you need to find an strong independent agency with access to many different carriers (especially those with access to multiple excess & surplus lines carriers). 

Optional coverage you may included is Personal Injury (libel, slander, wrongful eviction, etc.), Water backup, cyber liability, Ordinance & law, Equipment breakdown, underground pipes, ...Look for an independant Agent that is licensed in PA and has multiple companies in PA.  

The only coverage I would ever change to effect cash flow is the deductible. 

I've heard various opinions on opening yourself up to this type of liability ranging from "I never rent a property with a pool/hot tub" to "make sure when screening the tenants you make it a requirement they have sufficient insurance coverage" to "having a hot tub onsite for short term rentals is key."

Less in taxes and usually requires an HO6 policy instead of a full HOI hazzard coverage on an SFR which can cost 10X more per annual.You may also want to consider buying a duplex, or 3-4 family and if you do not own a primary you can go FHA and put only 3.5% down and occupy a unit for a year or less if you buy another home or move out to a bigger space.

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

Range 6.5 to 7.75 30 years depending on your credit score and the debt service coverage ratio.In choosing between the bank and a funding company you need to consider the following.