That would be identified through the pre approval process if done properly.  

Also do research on what's required to properly manage a LLC so the veil cannot be pierced. 

The duration for rent increase is one month for tenants that have resided less than a year, two months if more than a year. 

I am looking for some ideas on how to properly fund this thing.

In a mortgage foreclosure, liens that are more senior survive, and junior liens are divested (at least for those where proper service of the notice of sheriff  sale was properly delivered to the lien holders).

Proper has the most comprehensive coverage, but it is usually the most expensive. 

Quote from @Jerry Zigounakis: This just in from proper insurance"Thank you for your interest in Proper Insurance® Due to strict brush/forest fire scrutiny, our program underwriters have declined your property coverage.

I think your biggest issue with any "work-arounds" is going to be your legal liability and holding the proper insurance in case something goes wrong, which I'm going to assume you'd need to be properly licensed in order to be properly covered by insurance.

Access to Cash Value: A properly structured permanent life insurance policy (like an IUL or whole life) can build cash value that you can borrow against for property acquisitions, renovations, or even as a safety net during market downturns. 2.

Seems to me proper notice was not given and no refund is owed.