Holding onto it is a smart decision, and you're entering property investing in a solid position.To get started, focus on ensuring that the rental income will cover your mortgage, taxes, insurance, and any maintenance costs, leaving room for profit.

In the next few months, I'm looking to get a standard CA NAA lease with RUBS included for billing the water and sewer, as well as requiring tenants to have their own renters insurance, as that is not something they are currently required. 

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

I filed an insurance claim on our landlord insurance and got a remediation team in there immediately to stop the damage.

So, this tenant's budget may well be based off of $850/month rent meaning they may have other obligations such as a larger car payment that they took on because they felt they could afford it.

Quote from @Zachary Engen: I just got 2 airbnb up and going last month and I have a property manager, he also gets MTR insurance bookings.

High property taxes and increases in insurance are very real there as well.

I would also recommend umbrella insurance equal to your net worth.

(average of $400/m) $7000 annual expenses roughly- insurance, septic Mgmt, lawn care, etc.

Being out of state, you will want an agent who has good relationships with reliable inspectors, title companies, contractors, property managers, lenders, wholesalers, insurance agents, other RE agents, etc.