The deed and title insurance will specify the existing loan as an exception.

If the tenant is there and paying the rent and your only expense are insurance and taxes (interest is not an operational expense), then the expenses might be only 10-20% of what you collect that month.

Failure This Year Integrity Bank of Alpharetta, Georgia, was closed by U.S. regulators today, the 10th bank to collapse this year amid a surge in soured real-estate loans stemming from the worst housing slump since the Great Depression.Integrity Bank, with $1.1 billion in assets and $974 million in deposits, was shuttered by the Georgia Department of Banking and Finance and the Federal Deposit Insurance Corp.

When they are satisfied that the title is clean they will issue a title insurance policy, which you absolutely should purchase.

Taxes and insurance range from 2,500 to 3,500 annually on each.

I would have never known how to break down the expeses of owning a building like this.I'm Assuming that the expenses category is including things like property taxes, insurance, maintenance, pest control....am I missing anything important here?

In many states, single member LLCs do not provide this kind of protection.If you are the only member of the LLC the court can and often does seize assets from the LLC to enforce a judgment.The best way to protect yourself from personal liability is...1) Don't screw people2) Maintain liability insurance - an umbrella policy is very cheap.YMMV of course.

Does anyone know if I can buy insurance to cover my losses if a buyer fails to close the purchase of a home?

Screening, vacancies (mostly, these won't turn into purchases), advertising, make-ready, utilities while its vacant, insurance, taxes, etc., will still fall to you.

and insurance are covered.