Assuming that you're accounting for ALL expenses including vacancy, maintenance, CapEx, insurance, etc., then that is still a low return from the cash flow side of things. 

The GC was licensed and insured.

Here's what I set aside per unit:Taxes:  ~ $100 per monthTurnover expense:  3.5% GSRWater/Sewer/Trash: $30-$45 per monthMaintenance: 12%Cap Ex: 2.5%Overhead: 1%Insurance: ~$25/mo.Debt service (100% leveraged): $350-$400EVERYTHING ABOVE is increased by 10% to account for vacancyAll told, each unit still cash flows between $100 and $200 per month.These are B-/C+ small MF properties.Note I do not pay for management as I self-manage, but that is offset by the increased debt service created by the 100% leverage. 

Document date and time.

Some specific state knowledge is helpful such as CA where you have the added burden of the Franchise Tax Board documentation requirements. 

Do you have documentation/pictures?

Our question is basically how do we insure the place itself?

You will want to review your plan documents, bu the following solo 401k distributions rules generally apply:After-Tax Contributions and Rollover Contributions.

Hi,Anyone here owns a CRE in Houston that is paying for flood insurance? 

Minus mortgage (30 years fix around 5%), taxes, insurance, property management company, maintenance, and repairs, you will end up with a few hundred dollars positive cash flow while building an equity.