All input is more than welcome,Amàlia (a newby)15235, Pittsburgh, PA 152353 bedrooms, 1 1/2 bathrooms.Rental:$950.00 MONTHLY INCOME$367.50 MONTHLY EXPENSES$582.50 MONTHLY CASHFLOW8.33%PRO FORMA CAP$6,990.00 NOI$87,900.00 TOTAL CASH NEEDED7.95% CASH ON CASH ROI8.33% PURCHASE CAP RATEExpenses Income 50% Rule Total operating expenses: $367.50 Mortgage expenses: $0.00 Vacancy: $47.50 Repairs: $47.50 CapEx: $47.50 Property Taxes: $225.00 $83,900 PURCHASE PRICE Purchase Closing Costs $2,500.00 Estimated Repairs $1,500.00 Total Project Cost $87,900.00 After Repair Value $83,900.00 Down Payment $83,900.00 Loan Amount $0.00 Loan Points $0.00 Amortized Over 0 years Loan Interest Rate 0.000% Monthly P&I $0.00 Total Cash Needed $87,900.00 Financial Info 1.08% 2% RULE$83,900.00 TOTAL INITIAL EQUITY7.36 GROSS RENT MULTIPLIER0.00 DEBT COVERAGE RATIOAnalysis Over Time2% /year EXPENSE INCREASE2% /year INCOME INCREASE2% /year PROPERTY VALUE INCREASE Year 1 Year 2 Year 5 Year 10 Year 15 Year 20 Year 30 Total Annual Income $11,400.00 $11,628.00 $12,339.73 $13,624.06 $15,042.06 $16,607.65 $20,244.63 Total Annual Expenses Operating Expenses Mortgage Payment $4,410.00 $4,410.00 — $4,498.20 $4,498.20 — $4,773.53 $4,773.53 — $5,270.36 $5,270.36 — $5,818.90 $5,818.90 — $6,424.54 $6,424.54 — $7,831.48 $7,831.48 — Total Annual Cash flow $6,990.00 $7,129.80 $7,566.20 $8,353.70 $9,223.16 $10,183.11 $12,413.15 Cash on Cash ROI 7.95% 8.11% 8.61% 9.50% 10.49% 11.58% 14.12% Property Value $85,578.00 $87,289.56 $92,632.38 $102,273.63 $112,918.35 $124,670.99 $151,973.24 Equity $85,578.00 $87,289.56 $92,632.38 $102,273.63 $112,918.35 $124,670.99 $151,973.24 Loan Balance — — — — — — — Total Profit if Sold * $4,668.00 $13,509.36 $41,108.62 $90,912.18 $145,899.34 $206,609.60 $347,644.11 Annualized Total Return 5.31% 7.41% 7.98% 7.36% 6.74% 6.23% 5.48% * Property value minus net cash expenditures and sales costs Income, Expenses and Cash flow Income Expenses Cash Flow Loan Balance, Value and EquityOriginally posted by Account Closed:Transfer taxes in Pittsburgh are 4% but are 2% everywhere else.

I was considering STR and my insurance company did not have any coverage for that type of investment.

On my current, signed contract, the seller agreed to a flooring allowance equal to 3.7% of the purchase price and closing coverage equal to 4.5% of the sale price.  

In my area approx $30/mo for $20k coverage. $100 deductible for damage or theft and $500k liability.I keep the insurance on when selling on payments.

should i purchase an umbrella policy with 1mil in liability coverage or purchase a stand alone policy that covers just my rental but has a 500k liability coverage? 

Registration requirements include insurance coverage, inspection by the City’s Fire Prevention Division, notification of the Property Appraiser’s Office for notation on the property’s property record card, and issuance of a Certificate of Use for operation of a STVR and requires STVRs to comply with all applicable building, zoning, property safety and fire codes.

Simple 20 year term life insurance  is 100-200 a year for 250k coverage, so ~$15 a month.   

Any specific coverages?

15% down is available for full doc conventional financing AND debt service coverage ratio loan for single family homes. 

A typical coverage here is 300 K.