Ordinance or law coverage deals with the physical damage aspect and exists as an optional add-on to a landlord or homeowners policy.

Also to add on to the above, the reason that I haven’t looked further into the investing in another state idea through a property manager is the cost, I have been working at my engineering job for a full year now and have built up some cash from it by trying to budget as best as I can but I don’t think it's enough to buy a property without living in it to cover the downpayment and have a cushion / buffer amount of cash for expenses.

Quote from @Todd Dexheimer: To add on to what Nick said, preferred is the amount the investor is paid prior to the GP getting paid.

Either a one time fee upfront, or add on an additional cost per month.

Pulling from a LOC secured by those paid-off rentals means:* You’re buying flips with cash (easier to get deals, close fast)* You’re not depending on partners, lenders, or hard money with crazy terms* You can take your time on rehabs and really build something with your familyIt might be slower than leveraging hard, but it’s a lot more sane, and you get to enjoy the process.Optional Add-On Ideas:1.

With Prop S, state, and city tourism and hotel tax it can add up to 14.5% and an add on Abnb's cut. 

If you had the pool everything else would be great add ons.. drop the hot tubs.The reason the pool is the driver is because you can have hosts then who have tons of amenities, but everyone doesn't have a pool and that is probably one of the top amenities anywhere.That's my 2 cents and that is about all that's worth.

More eyes can mean faster bookings.Local add-ons: Partnering with local businesses (boat tours, dining) adds guest value.

He said he was going to add on a second floor.

In this scenario you'd bring in no money to the deal other than your documented income, credit, and promise to hereby pay on time.Some DPA programs are only allowed on 1-2 units so if you're house hacking a fourplex you might have to go with the standard FHA or 203k (if you're in need of cosmetic repairs 203k streamline or the overhaul of rehabs with a standard 203k FHA program).We've never experienced a lender we work with that required cash reserves on a FHA loan other than in specific circumstances like with a fourplex (min 3 months) or if you're under 600 fico some lenders add on an overlay which requires some reserves but overall in 95% of FHA situations there are no cash reserves required that I've seen over the last 15 years.I've personally house hacked over 4 properties (condo, townhome, 2 fourplexes) and the xperience you're gain from them and managing your own tenants will definitely help ease you into rental game.