When a tenant moves out, I want to fix the unit ASAP and rent it again; not wait for a 3rd party to review it and then tell me what they will and will not cover.

They also have covered outdoor boat/rv parking for a solid price. 

The probabilities of heavy losses due to default are much, much higher with 2nds than with firsts.

As far as closing costs go, see below:-Title fees-Title insurance-Hazard Insurance-Lender's closing fee, underwriting fee, or any other flat fee they charge-Origination fee-Attorney fee (if the property is in an attorney state)-Doc fee for closing docs-Prepaid interest through the end of the month you are closing-Recording and transfer fees on titleThat will cover most of your normal closing fees. 

While insurance might cover the reconstruction of your property, the community's recovery could take years or, in some cases, never occur.

As a new investor, a duplex gives me some pause because I'm afraid there might be long periods of vacancy where I'll have to come out of pocket to cover expenses.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

In the process, you will be covering the tab for some nice family vacations  for whomever you hire to set up this structure.....My advice to anyone who wants to spend on anything beyond an LLC in the state in which they live or where the property is located should first be able to articulate the following:1.

Damn, wait just so I understand -- Buyer's agent stuck with 3% and buyer paid $10k more to cover that.

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.