Again, the BiggerPockets store has some books on this topic, or you can learn about it by watching podcasts, reading blogs, and interacting on the forum.

I read about commercial insurance but I am not sure if it is applicable here and if it is, please help me understand how it differs from the traditional landlord insurance. 

You have no damages, though the previous owner at the time of demo may have had damages.3) Statute of limitation, if applicable, expires on nearly everything on civil matters at 3 years.

There is a few other reasons to evict that are not applicable 99% of the time.

Ideally, along with your mortgage payment, you’d want to set aside funds on a monthly basis for repairs, vacancy & capex if applicable.

I will just need to make a dedicated location to store the spare set so that the tenants won’t use them during their stay. 

The pests are likely caused by something the tenant is doing (not storing food properly, keeping the place clean, etc). 

The only reason you should not enforce action is if its contrary to an applicable law or regulation...Here is another section from Seller Covenants:Seller agrees to honor requests for execution of endorsements of Mortgage Note from Seller to Buyer if made within thirty (30) days following the Transfer Date, after which Seller shall not be obligated to honor such requests.So if there was an issue with a prior document, after 30 days they can tell you to go pound sand - and based on court documents, this has happened. 

I have always used Zillow's tenant screening application process to screen tenants in the past, and it's worked out for me so far. 

A flipper I know told me that FTF appraiser literally showed up the next day after the application was approved.