if you have title insurance then you have nothing to worry about.

ALL of the money from the rent needs to be going to the insurance, mortgage, and taxes until those are completely caught up.  

The title insurance rate is slightly lower but you typically end up paying higher fees on the other end.

In the loans/mortgages, what are you commonly requiring of your borrowers for insurance, personal guarantees, ect?

We recommend you to collect 1 year's pre-paid insurance, 2 month taxes & ins reserves, and include the monthly servicing fee in the monthly payment amount.Also, if your buyer speaks another language, it is also important that they sign a translation letter of the documents provided.I am an owner finance specialist and I am here to help answer any additonal seller finance questions you may have.

Would the insurance be much higher?

The tub was the type that also had the side walls as one entire piece so along with the tub that was cut out was the walls as well.I contacted the home insurance and was later told that they were unable to cover any costs associated with the replacement because it was considered "over a period of time damage" and not sudden.I was well aware of how to demo all of the old tub and to clear out the area but after that my youtube education began.

Draft a Purchase and Sale Agreement2. get an appraisal of the property3. find a title company to do the title search/insurance and closingAm I missing any other steps here?

And I need to buy a homeowners insurance policy for this.

Sounds like I may have to end up eating costs then on this one.I guess the next question then is do you think I'd be better off just letting my insurance cover any potential damages in the rare event that the pipes leak and paying premiums, or hiring a plumber/drywaller to do the work which would probably cost around $2K-2.5K  i'd imagine from the sounds of it.