Some carriers require limited water damage coverage depending on the age of the property and age of utilities.I would recommend at least 25% (ideally more) when possible and if you're limited to 10% you should make sure you cannot purchase another policy for a similar price.

What kind of resources do you recommend for finding a good first choice? 

I can't either recommend or not recommend them at this point.  

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

I recommend reading into the history of Helocs during the GFC.

Today, that building generates enough passive income to cover his annual retirement contributions.You mentioned taking the 10% penalty, which I’d only recommend as a last resort.

I like it more than others because the prospective tenants can upload all of their docs into the system and it auto checks things and auto emails their recommendations to confirm. 

Sometimes the items are not a deficiency but merely a recommended alternative way to complete something and those can normally be talked away without even making them into the report.

I recommend you include some of your key qualification criteria in the advertisement.

Thanks in advance for the recommendations / suggestions!