It doesn't cover any loss of income due to your rental being repaired.

Covering this with my salary is relatively comfortable.  

Another note on construction cost, going vertical is very expensive now and would require have a great connect with a developer and a builder in the area.See what rents are in the area and run the numbers to ensure the rents will cover your costs and give you a solid return—using the 1% rule can help.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

If I use a RMLO service I assume they cover the Dodd Frank and other consumer rules?

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

For context, the two extra parcels form a triangle with my subject property.

Post insolvency, the framework allows an assessment to all private insurers operating in the state to cover the difference which will subsequently pass the costs along to policy holders.

I would focus on saving enough money that if I had a deal go bad, then that money I saved was there to cover it. 

Now IF you have all those bases covered, my tips are: Take GREAT pictures and for the love of all that is holly please no close ups, wide angel pics.