I discovered this site about a year ago but finally decided to start taking the plunge. 

I have verified some of the data, waiting on tax returns and P&L data to finish the due diligence. 

Thanks for that, it's a useful data point.

I finally came to the conclusion that investing in real estate is the best way for me to make my future income. 

They never purchased renters policy because the LO paperwork was not finalized.

The investment capital was funded based on return at time of final sale. 

Without the supporting data, no one can give you an honest answer.

Finally, my own house (soon to be gifted by my folks) is in a pretty choice location in San Jose and I may move out of it to take a posting internationally.

I estimate that I can get the real estate agent to write up the final contract to a 407,000 for the building and 48,000 for the personal property included with the purchase.  

The fact that we're talking about 2 claims spread among 3 properties (2 rentals and our primary residence) did not matter, it was handled the same as 2 claims against 1 property.Okay, so we contacted some other insurers and finally settled on State Farm.