When speaking my State Farm insurance they indicated to me that the investment property needs to be occupied by someone within 30 days with a copy of the the lease agreement and that there is no way around that(if not the policy will be cancelled).   

Each insurance company has their own occupancy requirements as far as the time that may lapse from acquisition to occupancy. 

Do flippers need to get home insurance on their projects?

.- I’m not interested in anyone selling insurance - I know everyone says not to count on my pension, there is no guarantee, but if there was a measure of likelihood that a company would be able to honor their pension commitments then the conservative private company I work for would be rated the highest.- not really interested in savings advice on our 529 plan.- Nothing against Dave Ramsey, I really like most of his advice, but I think some of it is very basic and geared towards low income earners and people who have been very irresponsible with their money and are trying to dig out.- we have a about $70k to invest from our SDIRA, less if we convert a portion of that to a Roth.- we also will have about $250k to invest from the sale of our home.

If you put yourself in the rational consumer’s shoes, you would consider the total cost of each of the following housing options:A) a monthly mortgage payment + utilities + insurance + taxes on a single family home that you buyB) a monthly rental payment + utilities on a 3 bedroom single family home that you rent C) a monthly rental payment + lot rent + utilities on a 3 bedroom mobile home rental that you rent D) a monthly mortgage payment + lot rent + utilities + insurance + taxes on a 3 bedroom mobile home that you own (own the home and rent the land)A deal breaker for me is a situation where there’s <$200 spread between options A/B and C/D.  

Here is what I have so far -1- Address taxes, insurance and hoa fees already paid or owed at time of close.

Address: 909 6th Ave Oroville WA 98844NOI: $717Cashflow: $487Cash on Cash ROI: 18.90 %---------------------------------------------PriceOffer Price: $69,794---------------------------------------------IncomeRent: $1,172 @ 105 %Other Income: $0Total: $1,172---------------------------------------------ExpensesInterest: 3.88 %Mortgage: $230Tax: $45HOA: $0Vacancy: $59 @ 5 %Insurance: $59 @ 5 %Utilities: $0 (renters pay)Repairs: $88 @ 8 %CapEx: $88 @ 8 %Property Management: $117 @ 10 %Total: $685---------------------------------------------Total InvestmentDown Payment: $20,938 @ 30 %Closing Cost: $3,000Rehab Cost: $6,979 @ 10 %Total: $30,918

You will also not be able to work with the lender on payments, taxes, insurance, etc., as you are not a party to the transaction.

In general,Some closing costs get added to your basis and depreciated over the 27.5 years.Some, if they are considered prepaid interest may be immediately deductible.Some closing costs such as prepaid property taxes and insurance will be immediately deductible.Only the building value gets depreciated, not the land value .  

I would also recommend to be sure they are licensed and insured and if they have employees that they have workman's comp insurance.