I just want enough stable revenue to pay yearly expenses, hire a property management team, and pay the debt preferably in 5-10 years.

At the same time no matter how much excess insurance coverage you obtain, there will always be a policy exception for gross negligence and even negligence will likely be covered only under reservations of rights meaning the carrier can opt not to provide coverage. 

It was always....black swan event, interest rates never went this high, no one foresaw this, insurance and taxes are through the roof, not our fault.

Here are a few challenges I see going forward:1) Insurance rates: It has become a part time job to hunt for insurance.

If it’s not covered in the lease I see no reason why you can’t say “the insurance company won’t allow smoking” and tell them they have to smoke outside.

I have been presented this same opportunity and I just want to make sure I have the right insurance. 

Also, the LLC does NOT eliminate any personal liability on the next loan application which is a popular selling point by ill informed DSCR brokers on this board (but they rarely mention the higher financing costs that come with financing in a LLC) IMO, proper insurance coverage is a better choice. 

Require Renter’s InsuranceNow, this might seem like overkill for just a room, but renter’s insurance is non-negotiable in my book.

Furthermore, during the rental period, expenses like repairs and insurance were deductible, but these deductions end when the property becomes a primary residence, with only mortgage interest and property taxes potentially deductible as itemized deductions.In short, converting a rental property into a personal residence can provide some tax advantages, but you’ll need to account for taxes on both the depreciation and the portion of the gain from the rental period when you eventually sell the home.

You're likely to have a massive escrow shortage if you escrow taxes and insurance.