I look at this similar to mortgage insurance on a 5% down conventional loan (What I have used to purchase some duplexes).

I built a system that cross-references listing data against county records, tax trajectories, insurance markets, environmental databases, and and economic signals that don't show up on any listing page.Here are 3 real properties from the scan.

Principal high-sellers are not as willing to sell at deep discounts if they can get full retail valueInterest highTaxes-high (taxes are a function of value * municipal tax rate)Insurance-highWe are having more luck with disciplined acquisitions where the financing and basis create margin under today's conditions. 

@Stacy Raskinyou failed to mention what happens if the property owner has set up a triple net lease with a management company essentially guaranteeing a specific amount of income with no taxes, insurance or maintenance expenses.

Every legitimate cost tied to the deal matters purchase closing costs, loan interest, points, permits, utilities, insurance, materials, subcontractors, mileage, staging, selling commissions, even small things like dumpsters and inspections.

Once that’s recorded, underwriters usually ask for updated title showing you as the owner, proof of insurance naming the lender, personal financials like tax returns and bank statements, property status info (vacant, ready to rent, or marketing plan), an appraisal and possibly an inspection, and any LLC docs needed to confirm the ownership transfer.

From my perspective, since we invest through a club in different markets and asset types, the biggest pressure right now is higher borrowing costs, rising insurance in some areas, and sellers still adjusting to new pricing realities.Our community is just more cautious.

I have W2 job and the real estate property (cash flow negative), so I want to do deduct things like (depreciation, mortgage interest + home insurance, hoa, sewer + garbage, property management fee, laundry machines).

Edited to add: a quick google search indicates insurance doesn’t cover bed bugs.

This investment deal was breaking even accounting for all expenses (PM, insurance, property tax etc.) prior to this high property tax bill.