I got out of the stock market in 2009 after taking a $300k loss.

What I do know is that you can only charge them for actual losses.  

All this does is pay for all of your negative CF upfront).2 - Take all of the "cash" (only) that you put in, and divide by the anual CF to see how many years (maybe months) it will take to recover your cash. 

Let the agent and broker know that they are responsible for any loss.

Generally, you can only recover (assuming you can recover) what you lost and hopefully, you will rent the property to new tenants soon.

The benefit to the Borrower is that when they refinance the loan it will be possible to refinance for an amount equal to 100% of the costs without seeking a "cash out" refinance to recover their equity.

In the event of foreclosure and ultimate sale, it's pretty easy to do so long as your loan was fully covered, what do you do for any loss, who collects first?

Hard money or whatever you are using to loan on the properties leverages, but it not only amplifies gains but amplifies losses as well.

I tried it back in early 90’s in St Louis, a rehab, then Dick Cheney cancelled the A-12 and lots of us loss our jobs.

It covers replacement costs in case of fire and I think the liability coverage is $300K/house + loss of revenue etc.