You should consider an Assignment of rents/ Deed in Lieu/ personal guaranty etc.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

With this in mind, is there any reason I should even consider an FHA.

As you scale to additional rentals, you may want to consider an umbrella policy.

I've also had fencing installed for what I would consider an average sized yard twice and both were around $4,000 (6 ft standard style cedar).

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

You may want to consider an umbrella liability policy instead of the LLC so you can get conventional financing. 

Owner financing is another thing to consider.  

Unless you are willing to offer more than the cash offers then the seller might consider an offer with a financing contingency