Maybe he was a builder and cruising along fine, and then has been caught in a cash crunch over the past couple of years and might loose one or two or three.   

Alternatively, you can use the fair market value of the home at the time of conversion"Keep in mind, you will probably want to talk to a tax professional to go over all the consequences. 

I just got a policy in April for a similar tennant occupied home in 76258 area code for just over $2000.  

Furthermore, understanding the resident characteristics allows me to measure the target market and modify my investment strategy accordingly.Inspection ChecklistSituations vary from one property to the next, but here is an on-site inspection checklist to get you started:Interior Units:Inspect vacant units, including one of each finish out type (Classic, Reno, etc.).Check all down units.Inspect one unit from each unit mix.Exteriors:Landscape:Look for overgrown bushes.Identify trees that need trimming (no branches hanging over the roof).Take pictures of the following:Curb appeal on all sides facing the street.Landscape around the office and amenities.Overgrown bushes or trees.Any dead landscape.Areas that may need sod or mulch.Assess drainage:Ensure water flows away from building foundations.Check slope, gutters, downspouts, surface drains, French drains, etc.Exterior Walls:Determine the existing material (wood, vinyl, Hardie, brick, stone).Assess the condition of the walls.Note if painting is required.Take pictures of each building, including building number, each elevation (clockwise), and any breezeways or niches.Windows:Evaluate the condition of existing windows.Consider whether solar screens should be installed.Roof:Identify the type of roof.Assess its condition and age.Parking Lot:Check for potholes.Assess the need for restriping.Note whether the parking lot is concrete or asphalt.Evaluate drainage issues.Walkway:Look for tripping hazards.Assess drainage issues.Foundation/Gutters:Inspect for cracks in the brick.Check for separation in corners from fascia and trim boards.Evaluate drainage and identify poor drainage areas.Amenities:Identify possible improvements.Consider adjustments or additions that can enhance amenities.Talk to the Staff:Maintenance: Inquire about the physical condition.Office: Discuss current residents, delinquency, and potential changes to add value.Assess whether rents are too high or too low.Confirm rents and what is included/not included.Confirm other sources of income and associated charges.Confirm occupancy, pre-release, and vacancy numbers.Note: Maintain professionalism and avoid insulting the owner or broker, regardless of the property's condition.Keep in mind that investing in real estate is like solving a puzzle—you need all the pieces to see the big picture.

If you are interested, however, and are willing to communicate to landlords that you are new, but worth taking a shot on with some portion of their portfolios, maybe willing to compete on trust and earn into larger portfolios or bigger fees over time, you may consider reaching out to the team here at BP, and maybe there is a way to let those investors who are looking to support a new and up and coming business work with you.

You could tip it over with a single finger. 

Eventually you'll have to acknowledge me as I take my rightful place as the #1 Tribal Chief of the BP forums.The bearded ones evil reign is over.

If the primary unit is over 15 years old, in most areas in CA the primary unit is now rent controlled (which I believe is not what was intended by the 15 year exemption but is the way most jurisdictions are applying the 15 year exemption).  

I’m commonly seeing policies going up 25% to 60% year over year.

Utilities and supplies are additional expenses.