You have a good case as you are not the cause of the flooding or resultant mold.I don't know if you have or is required to carry renter's insurance.

Sure, you could argue that you'd be collecting rent from your tenants, but good luck finding a multi that has enough positive cash flow to cover the entire mortgage, taxes, insurance, vacancy, maintenance, capex and your living expenses, food, gas, utilities, etc.

Insurance is about 800 a year and taxes roughly 900-1000.

Have you gotten an insurance quote for $300 per year?

@Mohammed Ahmed - here is a great link to Zillows break down of FHA loans, it won't tell you interest rates, but has a ton of info on requirements, down payments, and insurance. 

My question is regarding the insurance on the property.

Other than it being a additional cost to do business and financing being more difficult under a LLC as long as you have adequate insurance coverage there is little other difference. 

I wanted to throw the numbers out there to see if you all had any advice or if I was missing something.It’s a duplex, electric is separate but gas and water are shared.Purchase Price: 71,000Annual rent: 18,600Annual insurance: 1,200(est.)Taxes: 2,883Garbage: 290Vacancy: 1,860(10%)Maintenance: 1,860(10%)Management: 1,116(6%) 775 placement fee (50% one months rent)Capex: 930(5%)Total: 10,914Annual mortgage: 3,453.6018,600-14,367.60=4,232.40 cash flowUnfortunately management is a must since it is long distance.

It is a duplex, electric is separate but water and gas are not.Purchase price: 71,000Annual Rent:18,600EXPENSESVacancy:1,860(10%)Maint:1,860(10%)Managment:1116(6%)    750(placement fee 50% of rent)Capex:930(5%)Insurance:1200(est.)Taxes:2,883Garbage:290Total:10,889Annual Mort:3,453.6018,600-14,342.60=4,257.40 cashflowSeems like it could work, i am thinking i will have to bill the tenants for gas/water/sewer after I get the bill. 

Auto liens are pretty stable investment if you can find them .. of course its with used car dealers usually or its sub prime and really sub prime.. but with the new tech they can put in buyers of sub prime cars..