Consider structuring your investment through an LLC for liability protection and tax flexibility.This post does not create a CPA-Client relationship.

You may also need to provide additional documentation, such as proof of income and employment, and may need to have a co-signer who is a U.S. citizen or permanent resident.In terms of buying with an LLC, it can be a good option for some foreign buyers, as it can provide additional liability protection and potentially offer tax benefits.

My Insurance Agent has strongly recommended that I put a Construction Agreement in place with my Contractor to shield me from liability, etc. 

It provided loss of use coverage and high liability limits but at less than 50% the cost of the quote I got from Proper.

I'm pretty sure if the owner filed bankruptcy the Trustee would have your claim to the income disallowed and since the owner does not have personally liability for the "debt" you're not even an unsecured creditor.  

You can always just increase the liability on your current carrier.

At another property with just the sidewalk I let the tenants take care of it, but the liability of these steep stairs makes it too important for it to be haphazard or me having to scold them to shovel and salt the walk and steps.I know in snowy areas people with houses contract plowing for the winter at a flat rate.

If you must retain some cash, consult a tax advisor to understand the liability and optimize reporting.

It can be a separate checking or savings but just make sure to have a "holding" account where only security deposits are held for your sanity.I won't speak to liability since I'm not a property manager, attorney, etc. 

Ensure you understand local regulations regarding permits; it’s usually a good idea for your associates to form an LLC for liability protection, but individuals can do renovations as long as they pull the necessary permits.