I have come slightly close to getting out all of my initial investment in the short term but I have not gotten out all of my investment (purchase + rehab) out due to 1) typically we do not get 80% LTV (we typically get 70% LTV) 2) the refi appraisals come in below market value (common issue in san Diego).Therefore I have yet to achieve the infinite return in the short term. 

The monthly savings typically outweigh the additional insurance cost.

The documentation that my lenders require are typically tax returns (last 2 years), rent roll of all properties, personal financial statement, and leases on the subject property. 

@Jessica Muto When we buy properties, they typically need a lot of work in order to get them for under market value.

Ex: i have $10k and you have $0....well we will still split everything 50/50 but i earn like 5% ROI for any cash i put into the deal.....

Renovated the park thats about 3 blocks away, and a new shopping plaza is under construction about 4 blocks away is near 3 major freeways and the houses around are all typically rising to the 500,000 plus price range.

@Javier Arbelaez What you are describing is a typical C class property.

Friends family and associates that know and trust you may be very happy to lend at 6% when they are earning 3% in a bank CD. 

In my area 15% and 3 points is typical.

Typically, coastal california RE that is any kind of a deal goes pretty fast.