Talking about loosing leverage as you pay off the principle...

Standard markets generally offer better coverage at lower rates and are more uniform than excess lines coverage that can include exclusions on thing like earthquake coverage. 

If the utilities go up because of someone's over excessive usage, you would write a letter to ALL TENANTS who live in that building and tell them that the water bills have increased by such and such amount and this letter is to serve as a notice that they will receive a rent increase to cover the additional usage of these utilities if the usage does not go down within the next two months. 

Good thing is that you learned a lot, didn't loose much money, and already have your finances in place somthT you can move more swiftly in the next deal you come across. 

If the seller sells me the property without paying the existing mortgage off, it would trip that clause and the mortgage company could foreclose on the property, and we both would loose out if he could not pay the loan off, so yes that's why the hard money lender is needed. 

Most agents want you to get taken care off when things happen, so by over insuring, you'll get paid. 2m although seems excessive!!!! 

If you get hit by a bus they need to know that they can outsource everything without loosing money.They want the building to bring in $1.20 for every $1.00 that they lend out.

When the lease is singed I physically walk the property and explain what is what and what they need to do.ExamplesIf a cabinet knob is loose, get a screwdriver and tighten it.

It can be an issue of great magnitude and you have a lot to loose with two houses and the goal of more rentals!

Granted it is only a 10% drop, but imagine loosing $200/m on your new rental.