If I only had 5 homes and had the two deadbeat renters for 3 months or so, that would have dropped that number considerably.Same with repairs.

Some neighborhoods better than others.My real estate agent, who I only know from my neighbor and has been in the business for about 3 years, sends me listings in the under $150,000 dollar range.

Obviously, I am not aware of your level of placement experience so I am not saying you can or cannot do it yourself, I only wish to provide additional insight.

I guess I don't really have a choice but to keep my fingers crossed and hope nothing happens that wouldn't be covered while I only have one or two tenants.I am going to make a few phone calls today to see if I get the same response from other agents.  

I'm also interested in any input from people who have used such a clause and the positive/negative impact.Thanks.

I only say that because there are definitely cash flowing deals around the area that my clients and myself have scooped up in the last couple of years.

Don't get me wrong, there are negative things about the area too, the uncertainty of flood insurance, the tight market also makes it difficult to find deals, people from the NE or California who pay more for homes than they're worth and in turn drive up the market because...

I think the 6 month I only loan gives you time to find other options ..  

I've realized there isn't really any middle ground there...you're either cash flowing, or you're negative each month. 

Then the lender may require additional information and/or wait until the item is resolved (negative or positive).