The property is strip retail that has multiple tenants which I think would be lower risks than single-tenant property.

In the past few years we had multiple problems with pipe leaks, which the landlord attempted to fix without much success.

This has worked out for me in multiple ways.1.

While it may be true the risk is infrequent, the cover amount is often in multiples of $1m, so they obviously consider the risk large.

Hi again,IMAGE TESTING USING FLCKRI know that image uploader is in progress, but @Karen M asked before and was told to use flickr and so I tried itand created a "Set" called Remodel Project for my 3 photosAdding my own image tags before and after since I don't see the ICONS in the "enter your reply" dialogP1040402 bathroom vanity and tub shower by pceinc88, on FlickrHope it works, Rich C

I will never know if the second contractor was type 1 or type 2 but regardless, it reinforces the need to ALWAYS get multiple bids.

According to this post: http://www.biggerpockets.com/forums/51/topics/70981-turning-personal-residence-into-rental-propertythe proration doesn't apply to when you live in it then rent it out afterwards, then it is just the 2 out of last five year test, but it does apply if you rent it out then live in it.

Bring multiple copies with you, and they should stamp one and give it back to you for your records.How long it takes for them to enter it into their system.. now that is another story.

Would you guys recommend investing into multiple smaller multi-family buildings (4, 8, or 12 plexes) or consolidating units into one 16-20plex building?

That's about $100K for the entire property.I'd want careful inspections and multiple estimates on the rehab work.