The second part (TI) is calculated by taking the homeowners insurance premium which is paid once per year and the property tax which is also paid once per year (through it can be a little more complicated, see below) and dividing by 12.

If you read elsewhere here (and you should) you'll find the "50% rule" that says expenses (taxes, insurance, utilities, HOA fees, vacancy, advertising, etc.) will eat up 50% of the rent.

Finally, the tenant may do the maintenance wrong and cause a fire burning your house down (which may or may not be covered by the insurance).

Make sure you have insurance!

I wonder - would general liability insurance provide coverage for an incident like this?

Note that the "taxes & insurance" part of the payment are really expenses.

This is after all operating expenses (taxes, insurance, prop. management, repairs, vacancies, etc.).

We live near each other, share autos, pool insurance, pool investments, watch each other's kids and pets, etc.I see long term, and by that I mean multi-generational, wealth building to be a good thing.

Assuming the numbers reported to you are valid (always a big assumption until proven), you'll struggle and likely fail to get this project financed as the debt service coverage ratio (DSCR) doesn't work except in the last scenario presented above.

All she would have to pay is the utilities, insurance, pest control, taxes, and maintenance costs.Do you really think my attorney is not working in my best interest?