If I do not end up transferring it to an LLC (refi charges and higher rates) then I think the Managing LLC (and an umbrella policy) may be the way to go. 

My main concern is to find something that won't force me to put the property in my name when I want to have it under the umbrella of an LLC.The down payment is not a problem because I will be using my HELOC on my residence for it.Private money is a good option if the terms are sane and decent. 

Because the insurance is set up this way, I cannot get an umbrella policy.  

Should we buy an umbrella policy for the LLC or personal umbrella policy?

My QI was even under the same title co umbrella, so what could go wrong? 

I would suggest contacting several Independent Agents who represent multiple companies and have them run comparisons.I would give them an Idea of what limits you are looking for (building, Liability, deductibles, umbrella, etc.) to make it easier to compare.Things that they will most likely ask:- what is the construction- year built- year when updated: Electric, Plumbing, Roof, Heat- If any dogs, what breed- any losses in past 5 yrs- any pool or playground- Lead free certified- any in ground tanksGood luck on the purchase and feel free to PM me if you have any questions on the above info.

Maybe just buy a good umbrella policy and call it a day? 

We would also have a separate umbrella policy to cover Landlord liability, and we always require proof of Renter's Insurance with our name on the policy (so we're notified if the policy lapses).

The cost of leverage is higher and harder to get as well as a much cheaper umbrella insurance policy would cover your liability.I know you can do a mortgages right now so cheaply I would take a standard mortgage if possible.

You probably want umbrella insurance as well.