They won't hit your 1% rule, but nothing rarely does unless its in a bad area.

The properties available in that area fitting our criteria are around 200-250k, and we have around 45k combined saved.

However, I’m concerned that the recent employment gap, combined with the instability of contract work, might make it difficult to qualify for a loan.I reached out to the broker with these concerns but haven’t heard back, so I’m turning to BiggerPockets for advice.What’s the best path forward?

Currently, I have this following DP3 policy that will be the renewal:SECTION I – PROPERTY COVERAGES LIMIT OF LIABILITY PREMIUMCoverage A – Dwelling $265,400Coverage B – Other Structures $5,308 IncludedCoverage C – Personal Property $5,000 IncludedCoverage D – Fair Rental Value* $26,540 IncludedCoverage E – Additional Living Expense*:*Coverage D and E combined, limited to 10% of Coverage A for the same loss (see policy).SECTION I – DEDUCTIBLES:In case of a property loss, we only cover that part of the loss over the deductible(s) stated:All Other Perils other than Hurricane Deductible:HURRICANE DEDUCTIBLE: 2% of Coverage A Sinkhole Deductible: Not Included$2,500$5,308SECTION II– LIABILITY COVERAGESCoverage L – Personal LiabilityCoverage M– Medical Payments to Others$100,000 $0.00$2,000 Included☺️ If anyone has any ideas on this I would appreciate some conversation.

That rarely works.

Most property managers and landlords use a combination to get the most exposure.

You will often have owners and tenants reach out with what they fell like are emergencies, very rarely are they high priority.

I would triple check the rental amount in your estimate as that's almost a 3% rule (monthly rent is 3% of overall value) - which is very, very rare. 

It definitely present with its own set of challenges especially in certain C class areas where tenant turnover or rent collection can be tougher but if you're doing your due diligence on the specific street, rental comps, and crime rate, you can find solid, cashflowing deals.Class D tends to burn people, and Class A rarely makes sense unless you're playing a long appreciation game or have a different strategy.

In the rare case that someone keeps tripping breakers, my response time to reset begins to get longer and longer.