Does this allow me to take out a homeowners policy even though they have the warranty deed and I have a security deed? 

Hi, want to know, with a budget of 50k with financing, what market is the best ti buy a home and rent it out?

I have a great property in PHX that we have listed for sale, but I would be interested in running an RAL out of my house (already furnished, 5 bed 3 bath, single story ranch style home with two master bedrooms and a pool). 

So here's my question:How do you strike a balance between higher cash flow vs building value? 

I'm not trying to squeeze every dime out of our tenants.

I am based in Denton TX, and I am looking into out of state investing.

While I overall agree with you, there is a case to be made that premiums will start to normalize:Namely, major insurers pulling out of the high risk areas like FL and CA are limiting their catastrophic events.  

The second buyer will pay 150K cash after appraisal.I assuming number 2 is the better deal.

Better to ask first rather than spend a lot of money and find out later..... :-)

I had to do my own digging and found out after I bought the liens they were actually two lots that are assessed at $2800.