(I didn’t see that stated but you mentioned first homeowners loan.) if so…You don’t need an LLC…1)Any Injury in the property will likely be result in you personally being sued as well. 2) it sounds like you will have negative equity (assuming 10% selling costs and 10% or less downpayment.)3) it sounds like you probably have a minimal net worth and are virtually judgement proof.

To add insult to injury, new construction went into the toilet after the Great Recession. 

One of my tenants did this.. and the bankruptcy trustee made us give back 3 or 4 months of rent payments  talk about insult to injury.. ugh. 

But I suspect it was for personal injury because he fell and injured himself once when he was alone in the apartment, and drunk and feeling dizzy. 

Or if they are walking on your property and step on a nail or trip on a pile of 2x4's BUT if your contractor has insurance than HIS/HER insurance will pay for injury caused by construction type accident.If you have a contractor do work and it causes damage then i.e. roof caves in.

Almost never to my knowledge.How quickly would you lose a liability case if you sold a unpermitted flip here that caused a fire or personal injury? 

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

Experts recommend having enough savings to cover at least 3-6 months of living expenses.Adequate insurance coverage: Having adequate insurance coverage, including health insurance, life insurance, and disability insurance, can protect you and your family from unexpected financial hardship due to illness, injury, or death.Debt management: Managing your debt is important for your financial health.

,  can you use as a government agency lease (halfway houses-foster care home-Injury Care housing, veterens Housing) can it be used as commercial space??? 

He was a great help to me while I struggled through some injuries from a couple accidents and appreciate him immensely.