Not only do we have to make sure they have a license and insurance but that we do a contractand dont let the money get behind you.

I am not sure if the paying for my rentals with cash is agreed on by all, but if, all I owe on them is taxes and insurance and hard times come at least the banks won't be able to take them away!

I know about having $1 million is general liability insurance.

I've heard that lenders want to see that 75% of the rents can cover the mortgage pmt, taxes, and insurance.

Or is it an "alligator", eating taxes and insurance while not providing any return?

Executed Broker Loan Fee Agreement, if applicableAdditional items required to approve, document and fund the loan1.Appraisal Report by an approved appraiser2.Formation documents of the Borrowing Entity (LP1) and Tax I.D. number3.History of property ownership if purchased from a related party4.Closing Statement for the property (or proforma closing statement if under contract)5.Joint Venture agreement (if any)6.Preliminary Title Report with underlying documents7.Geotechnical Soils Report8.Phase 1 Environmental Site Assessment 9.Site plan (with units plotted)10.Grading Plan 11.Architectural drawings with specifications12.Architectural agreement (if any)13.Engineering agreement (if any)14.Construction Contract (if any)15.Insurance broker’s name, address, and phone number (builders all-risk, general liability)16.Independent cost review may be required17.Related Debt Certification (Loans To One Borrower)Notice of Right to Receive a Copy of the Appraisal Report Here is the info to help you out.

Although not ideal, it is OK to have negative cash flow if your INCOME (rent) exceeds your EXPENSES (interest, property tax, insurance, utilities, maintenance, etc.).

My background is in the Financial Service Field (Loans, Investments, Insurance).

My background is in the Financial Service Field (Loans, Investments, Insurance).

Insurance replaces the rent loss..