That should cover you for liability unless you plan to manage the property very poorly.A trust owning an LLC seems to be overkill for a single rental.

We just request guests not let pets on the furniture...which some don't listen...and charge a competitive pet fee to cover any extra cleaning or damages.

A good policy will also cover loss of use should an unlikely event happen.Re: liability.  

@Mitch DeminskiDo you cover Newark?

Malcomb's suggestion that you will be limited to a maximum of 75 percent of the appraised value is correct assuming the the rent will cover that figure.

If you do not think the tenant has cash on hand to cover the judgment, you are likely better off turning it over to a collections agency. 

I've thought about offering $20,000 every 6 months for 3 years and a balloon mortgage to cover the remainder... 

If that's not the case and the GC still requires 1/3 payment up front,  it means they have other projects that are suffering or lack quality subcontract relationships and can't place them on net 30's and when contractors are moving money around to cover for other projects,  that's a slippery slope. 

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

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.