Assets + liabilities = equityAssets = equity - liabilities $5,000,000 = $500,000 - ( -$4,500,000)You Buy an apartment complex for $5 million with a $4.5 million mortgage.

I’m currently house hacking and wondering how can i get a required liability insurance for my tenants?

As I’m sure you know, there is a substantial different between ST and LT cap gain rates and you will basically be offsetting a smaller tax liability against a potentially larger tax benefit.

Ideally, you want each asset to be held in it's own liability limiting structures.

In the meantime, you have a liability that doesn't cash flow.

There are no showings because the bank does not want the liability.

Find out that your market has shifted and now you're stuck with a liability you need to fire sale or hold onto.

@Shane GabouryJust my personal opinion but when you can secure a 30-year fixed loan against a quality property under 4% I view that as an asset not a liability. 

This would actually increase the cash flow you're looking for but harm some of the other metrics we look at to determine the viability of a deal.Cap ex and repairs may still be a combined 5%-15% too low and you also have to take into account lawn and snow expenses you'll have to address throughout the year, unless you put this back on the tenant, which can be dangerous from a liability standpoint but it certainly isn't uncommon.The biggest thing that kills this deal however is that there is no management expense factored in as you did in your last. 

You might become a liability or have to support a family member.