I know often times people on this forum say they are unnecessary and don't always protect against liability and just get a good umbrella policy.  

If your losses come from something you "work" in, like your own construction business, they are nonpassive and exempt from PAL rules (although may still be limited by one of the other set of rules).Knowing how we love to call anything we do "business", the IRS clarifies what is considered passive and therefore restricted by PAL rules:1.

Still new here- I know I can find the cap rate by dividing the NOI by the market value but what's the most reliable way of finding the market value? 

Do they know how to maximize the return on investment for you?

I’m not 100% sure how it works.

At that ARV I would ask your agent how many days on market to expect or which lender people tend to use. 

Srinivas,Looks like you are in Texas I know El Paso has some good cash flow rental prospects.

Don't know enough to price/comp it out.

How was your experience with Penfed?

@Tomomi Ohta I don’t know a single investor who would evaluate properties in Texas using a 2% rule, let alone the 1% rule.