If rents are 800x4=3200, then max sales price should be 320k.If he does not have a home yet, then go FHA, which is only 3.5% down but has PMI (mortgage insurance). 

When the dewinterizing company went to turn on the water, almost all the plumbing fixtures leaked and they couldn’t leave the water on for our inspection without fixing some things / installing new shut off valves.If your sow is $120,000, aren’t you assuming you’re redoing plumbing and electric from scratch?

In case if the units stay unrented, the borrower should have enough cash reserve with him to pay Principal, interest, insurance and taxes for 6 months.

All PM's carry E&O insurance to protect you.

I feel that it may not cash flow well since it seems like my payment is quite higher than I initially expected.Example: 2 bed 1 bath in 93728 Asking price $125,000Closing costs estimated: $7,200-$8000 (includes interest, insurance, and taxes for 1 year)20% down paymentTotal due upon close: $27,200-$28000Thanks for any advice or feedback!

Make sure and carry adequate insurance with high liability limits no matter what your situation.A final thought.....and I don't have first hand experience in getting sued but knowing others who have (in Florida), it is very unlikely that a judge will force you to liquidate a property, especially one encumbered by a mortgage, to settle a lawsuit. 

That was years before Obamacare and that was one way I used to deduct my medical insurance and co pays.

Does homeowners insurance cover leaks from one apartment into another?

Who is everyone using for insurance?

In many cases, closing costs include escrow deposits for taxes and insurance.