Does anyone know what is typically covered by the HOA's insurance policy?

Upon receipt of the buyer’s payment the seller paid the monthly principal, interest, taxes and insurance (PITI) payments to the lender servicing his FHA loan, and pocketed the balance.

For existing properties they will look at your tax returns for the actual income.For new properties banks I've encountered could 75% of rent minus PITI as net rental income. 

We bought a 3 units, lived in 1 and our tenants covered PITI - we saved and saved and bought our second about 18 months later and have been growing from there. 

The title company will register everything that needs to be registered.d) the title company is also happy to charge me for a "lenders" title insurance policy.

I'm buying a 4br 1 1/2 bath single family home which now waiting for closing for $294.000 which PITI would come out around $2500/month with 5% down with FHA loan.  

There are many national programs with master policies that have the ability to have a high deductible or even General Liability only.You are at a size where you can strategically structure your program to self insure a larger potion of your risk.I will PM you some info.

Just look at the whole package and do not be afraid to ask them questions, review their forms, ask about their policies and what-if them to death. 

FHA should have a lower total PITI than Home Possible due to FHA having rock bottom rates (federally insured, super safe for the lender), which will offset the mortgage insurance.Note that since consumers do not "expect" a killer rate with 3.5% down, many banks juice up the profit margins on FHA. 

I've read several strategies for how to separate my personal finances from my business and am ready to get serious about this topic (the only protection I have currently is a $1M personal umbrella policy).