As a new investor, I have limited capitol. 

While there are some limits here (you don't need a pasta maker), asking about having a plunger in each bathroom closet is insane.

Warranties often have limitations, like they might not cover pre-existing issues, and there could be delays if they require you to use their contractors.I'm not sure if you've purchased a warranty already, but before purchasing a warranty, it’s a good idea to carefully read the fine print to see what’s covered and if there are any exclusions.

I recommend learning your states laws and limitations around LLC's and working with some professionals in your area to help you determine your risk tolerance 

While great for cashflow, may limit your exit stratgy.Also, How comfortable are you with the offer as well as the overall numbers on whether this will or will not cash flow? 

To confirm my recommendation ask him for references at his current developments, I bet he won’t give you names and will make up an excuse!

In my opinion, that is a riskier bet because you have to have a big pile of cash for contingencies.  

Listing at $2000 gives you room to accommodate voucher limits while still capturing the maximum rent possible.

Auto limits of 250/500/250 and Homeowners liability of 500K should be the minimum you carry.

Many banks limit personal loan amounts.