***Fake mortgages are being filed against properties in Cleveland and they are targeting out of state investors.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

There is no mention of the loan balance, just the rate and payment (I did the math on $513 / mo - if it's principal and interest only the loan balance would be $92,900 - so I suspect you're quoting a PITI payment). 

If your holdings are small (i.e. a couple of SFH), the cost of setup companies, annual filings, etc. may simply not be worth the cost.

Ray Kroc (McDonalds) filed for BK 4 times.

Get into the routine of entering them as soon as bills come in or putting the bills in one location, entering them once a month and writing on them that they were entered/paid, then filing them. 

I think if it's vacant 30 days, then a homeowners or landlord policy will deny any claim filed.

While that is good for lenders, since the process can possibly be less than 30 days, while other states could take years. it's a hazard for 2nd lien position holders who could not be informed quickly enough to safeguard their principal before the senior creditor forecloses or don't have the capital available to pay off the 1st lien holder to preserve their loan position and avoid foreclosure. 

This requires research and time which once I did using excel files and pen and paper.

Like many (most) businesses it requires an investment of capital; money expenditure for ongoing marketing; management of operating, marketing and professional personnel; keeping accounting records and filing tax returns; established sales practices; constant monitoring of goals, budgets, and productivity; establishment and implementation of operational systems; and providing customer service.