That being said, there are varying types of liability when it comes to guarantors.

How much do you ask for the liability coverage to be when you ask your tenants to get rental insurance?

In Salt Lake City, you don't even need a business license to rent out rooms in your own primary residence.What are my liabilities renting without a business.

First and foremost if you haven't already, review your purchasing power (income, credit, liabilities, etc) with a lender/mortgage broker, and keep on looking at opportunities. 

I understand the risk of buying a house you haven't seenI understand the risk of buying at an auction you assume all tax liabilities, correct?

If you want to appear professional and on top of that get liability protection, put up an LLC and close under the LLC. 

Until the end of the lease or until you find a new tenant, you don't yet know what his final financial liability will be, and thus it is logical that you would retain the security deposit until then.

Liability.

You should definitely JV on your first flip so it's not all your liability.

Maximum liability coverage and a good umbrella policy is going to take care of 99.9% of your needs and exposure.