Your basic insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

Emmanuel,If your loan officer did not set up accurate/enough months held for escrows tax/Ins the new lender will do an escrow analysis and require the sufficient amount.

Umbrella policy is an extra policy that offers additional coverage to protect you from not having sufficient coverage in case a claim comes against you due to injury.

The problem I've ran into is that a buyer that has been doing auto-deposits monthly has had 3 strikes when it comes to "in-sufficient funds," and at that point MSE requires they be placed on mailing in checks only.

Just make sure that they have sufficient available credit servicability to cover another loan. 

Dave, last two year's tax returns with all schedules, last pay stub (sufficient with tax returns, if returns are not needed, you'll need the three stubs) & copy of all deposit accounts and savings/retirement accounts.

The lender is saying 6 weeks for closing - is that sufficient ? 

That said, there are vacation rentals with sufficient deficiencies that 80 percent isn't realistic at any price level.

I would avoid a heloc as it carries too many issues and rates are higher on helocs versus a portfolio cash out refinance.Heloc is generally set up on a 10, 15, or 20 year amortization while a cash out refinance offers a 30 year - lower rate & lower payment.These prorgams will want to see full doc income most DSCR's will not offer junior lien and will require each property to have sufficient LTV's/Equity.

But my position would be I am foreclosing you can pay the note off in full and all my costs and I will assigne the note to you.In most situations as you describe though I wiped out all the juniors .. as they did not have the funds to pay me off or the asset got butchered in the rehab process and there was not sufficient equity to throw good money after bad...