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. 

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

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. 

Our standard policy for all our properties has been that all adults age 18 and over who will reside in the home must apply, be approved, and be a signer on the lease.

Might even be higher with expensive insurance or outside factors. 

Do what you can to do things to code, and then get good insurance. 

Also, what is the general cost of flood insurance for multi family properties?

I GC´d the repair and reno of our burnt out husk, and the insurance saw fit to put $130,000 into our house.So we get moved back in, lifes good.

So the owners either didn't have insurance or never paid off the mortgage after receiving the insurance money, I'm guessing the latter.