That being said, let me cut-and-paste a portion of one funds underwriting guidelines surrounding flood coverage requirements for their DSCR product "The appropriate amount of hazard insurance is determined as the lesser of:
o 100% of the insurable value of the improvements with replacement cost coverage, as established by the property insurer, or the unpaid principal balance of the first and second mortgage (sufficient coverage for the new combined loans), oro The combined unpaid principal balance of the first and any secondary financing, as long as it equals the minimum amount required to compensate for any damage or loss on a replacement cost basis, typically 80% of the insured value of the improvements.

I’m running the math carefully using FHA loan terms (~6.75%, 3.5% down), and I’m trying not to let emotion get in the way.

So the math is simple if you want $120,000 of passive income you need 1.5 million in readily available capital.Thats assuming you hit 8%, not 4% and don't have any dog investments.  

Quote from @Renee Adams: @Patricia Andriolo-BullSolid point — and I love that you mentioned the math upfront.So true that the guest quality drops fast when prices do.

We are seeing a lot of new builds with builders walking away and the RTL lenders giving away these loans on the secondary market.Lots of opportunity coming in this area.

Before we start with math, the first question is whether you can even benefit from more depreciation.

Rough math....$100K a door, $3,200,000 purchase price, you'll probably need $1.500,000 in down payment and reserves held at your lender. 

Doing the math - it would take 41 homes making $300/month in free and clear profit to achieve $150,000 in net cash flow per year.  

The MAO formula (max_allowable_offer = 70% of ARV - Repairs) has been around far longer than BiggerPockets.In order to make a profit on a fix-and-flip, you've got to know your rehab costs, but you ALSO have to account for:- Financing costs, including origination and interest payments (unless you're paying cash)- Holding costs, including property taxes, insurance, utilities- Selling costs, including real estate commissions, buyer concessions, closings costsIf you were to pay $78K, put $70K in to rehab, and then spend another $15-20K on financing, holding, and selling costs, you will NOT be seeing $25K profit.Anyone saying different should be required to show you their math! 

Many homeowners in 21 and 22 bought at the peak and have rising taxes and insurance while home prices are falling, this is no different than the mental math behind 2008 where people have no equity in there homes and cannot afford the payments.