The biggest ones to consider are the mortgage payment (unless you paid cash for the property), property taxes and insurance.

You do have to watch flood insurance rates in all these towns too after Sandy.From a return perspective, vacation rentals almost never make sense.

Is that enough to cover insurance, hot water, maintenance/repairs and reserves for capital expenditures?

Insurance is a business, and like every other business their number one job is to make money. 

Probably closer to 8%.You're forgetting Insurance and Management (10%)It's unlikely that you'd be able to create $20k of value with only $5k of renovation. 

Hello,I’m looking for a homeowners insurance quote that will be my primary residence in LaPorte County, IN.

Insurance and using an LLC can provide you with great protection(keep you from losing big if any legal issue ever comes up) and is affordable even when starting out(even potentially free for the LLC part).

@Keleisha CarterHey Keleisha, the calculator uses 50% of revenue to estimate expenses, which is good for a quick back of the napkinb estimate, however if you're seriously considering an offer make sure you hone in on your numbers.Taxes are pretty easy to get right, a conservative insurance estimate equally so.

I insure it based off of what I invested.

Mind you we have to save for insurance and taxes since the mortage does not escrow it, so we're talking about an extra $600 a month in expenses.