Additionally, what insurance do you recommend I require the sub-tenant to get other than general renters insurance?

In this case no properties have been located and it's been almost 6 months.I know 2 people who are into this guy for varying amounts, let's call them Eric and Bob, keep in mind that both individuals attempted to contact Powers on at least a weekly basis, here is the timeline:June 11th:Eric and Bob both wired $20000 to USA Income PropertiesJuly 19th:Eric was offered the opportunity to to fund a promissory note for $25000 with a due date of Oct 15th, he didAugust 26th: There was a property "located" and Eric was asked to submit an additional $20000 deposit to fund the property (these are distressed and typically fall in the 60K range, the idea is that the funds from the promissory note + previous deposits would purchase the property)September 29th: Bob informs Powers that he would like a refund of the deposit, keep in mind that the deposit contract states the following: """Either party may cancel this Reservation without incurring liability to the otherat any time until such time as both parties have signed a Binding Agreement toPurchase and all contingencies in said Agreement have been satisfied.In the event of cancellation by either party, the aforesaid deposit shallbe promptly returned to Purchaser without charge."""

You need to know your numbers that you are good with on the income, and debt and counter off that...

Wouldn't flood insurance cost an additional $2-3k per year?

Not sure what your current DTI is but you may benefit from having your current rental income count as income and less so as debt.

You don’t give proper notice for renewal, non-renewal, rent increase, don’t make an emergency repair fast enough and have to pay for additional housing?

In addition, want to clarify that REI Nation doesn’t categorize their properties into buckets like ABCD.

Please let me know if you have any questions or need any additional information. 

There are additional informational forms that need to be completed once you do business in a foreign country.2.

I want to add that the ROI formula is looking also at the amount of money out of pocket invested in the project so if you leverage the investment with debt of any kind you will increase your ROI, as long you give it back...