No technique is perfect.If worst case scenario develops and lender does become aware of and chooses to enforce due on sale clause, almost all states provide sufficient time to obtain a “take out” loan.  

Heard this one this morning and loved it: "In the morning you have a decision to make, go back to sleep and dream your dreams orrrrrr wake up and chase them"as always Hustle and Motivate 

I’ve got a very large umbrella policy to cover liability right now which might be sufficient for you starting out.

@Chase Farley there is no way that 35 gallons is sufficient.

Speak with your accountant-three properties are likely not enough to provide sufficient payback to do a study.

Aside from that, you want to have replacement cost and sufficient Personal Liability coverage. 

I watched my best friend go from sleeping on my couch to owning over a million dollars in real-estate during the collapse back in 07, 08.

In other words, each property must be self sufficient. 

With non performing notes that are liquidated via foreclosure, the lender recovers 100% of their advances when there is sufficient equity in the property.

It’s pretty cheap to have and it definitely makes you sleep better at night.