I think the combo of having a good respectful tenant and a manager is your best bet.

I have an opportunity to get a mortgage for the first time ever (due to a confluence of positive circumstances such as mortgage rates, my DtoI ratio, my wife working, etc) and am inclined to get two or three, thinking that a good SFD is almost always going to be a good bet if it flows and doesn't need a new HVAC or roof for some time, and even if housing prices drop due to major economic fundamentals going awry such as a stock market bubble burst or our debt problems coming home to roost, or the middle class going the way of the dodo bird ...

http://www.bloomberg.com/infographics/2013-12-20/blackstones-big-bet-on-rental-homes.html

I believe insurance is your bets bet against liability, next to good management.

,While 10% is obviously a better return than whatever your investor might be getting in bonds or a savings account, it is not a great risk-adjusted return.

Thank you all for the correction, somewhere in the back of my head I knew it was 25%, not sure why I was running the numbers at 10%.Taking that into account, adding a buffer for utility and lawn care during vacancy and adjusting upwards for PM vacancy costs per Harry M's suggestion, here are the new numbers: Purchase Price: 81500 Rental Income: 1300 - Current.

I'm looking for ways to get involved and a lease option seems like my best bet right now.

I receive a call later from a public adjuster telling me all the pros of filing the claim through his company, should I go to insurance (Allstate) with public adjuster or eat the cost and that of the insulation project?

I bet they'll negotiate.

For a safe bet, some even figure in a reserve amount as well each month for future repairs.The management fee doesn't cover any of the property expenses.