My brother owns a condo in the Fayetteville, NC area and recently got a letter from his tenant's lawyer stating that they have filed bankruptcy and that he could not directly communicate with the tenant until the bankruptcy was complete.  

We have a large house with a lake view that is currently rented to a retired couple while they build a house (cough, McMansion) on their own property just below the rental, directly on the waterfront. 

I have a feeling the quote you received is Basic form and excludes Water backup because it is the only option the insurance carrier can offer. 

If you need direction on good neighborhoods, etc. feel free to send me a PM.

And just a quick update, I received the bid from my contractor so I'll post the scope of work with costs this evening or tomorrow morning.

I am looking for people to either share there knowledge with me or point me in a direction were i can achieve this knowledge.

Additionally they are his employees.You do not want these to be your tenants and any advice you receive suggesting you could try them out will only lead to you non renewing at some point after you start losing money and sleep so you are best to start right.Do not, I repeat, do not allow the present owner to sign a binding lease with them.

Counterproductive to your end game.Roll the IRA into a self directed version and buy the property with IRA funds (you can get a non recourse loan too).As @Christopher Phillips mentioned, every property needs to cash flow with at least 70% financing or it is not a good deal from a cash flow perspective.Also, this $700 or so cash flow you are quoting, does that take into account all the expenses?

You are only receiving 50% (Duplex) or 66% (Triplex) of the potential income while you are living there.  

They said we didn't even come close, but a week later,a duplex directly next door sold $68K So PATIENCE,PERSISTENCE ,and PERSEVERANCE ........And away we go.I listened to a podcast the other day,he said  " PERSISTENCE + OPPORTUNITY= LUCK "SO I THINK THE A ANSWER IS TO TAKE ACTION WHAT SAY YOU ?