Rochester has a steady loss of population and jobs.  

My opinion is if you are still underwater in 2018 then you need to either be prepared to be under for many years to come potentially or cut your losses.

@Ken Nyczaj You should build in a feasibility study into the contract with a clear exit clause. 

I'm wondering if anyone can shed some light on the cost of insurance (hazard & fire, liability, sewer backup, loss of income, umbrella, etc.) that a landlord would pay for a rental property in Utah (Utah Valley to be specific).

I guess I'm more of an analytical/planner type where I like to learn as much as I can about what I'm looking to get involved in and be able to outline a reasonable and feasible plan before diving in.It feels like to me, if we start with just one house, without a plan for how to get another one or two, then we will potentially shoot our load or prevent ourselves from other opportunities by not considering how to move forward. 

So you could feasibly purchase a tax cert for $1,000 and still have to front another $5,000(as an example) for other taxes and fees. 

It pencils to about 9% COC, before the paper losses, and obviously, he needs to store cash. 

Don't count on appreciation in the next few years to cover your month to month losses.

Funding the multi family deal (4 unit) with a FHA is a very feasible outlet, but keep in mind that you may have to sacrifice occupying one of the apartments as a primary residence for a short period of time.

The alternative is a 17k loss.