You mentioned gross rents of $3400 per month and Principle/Interest/Tax/Insurance of $2500 per month. 

I’d hope that the inspection fee and markup would cover the costs you are mentioning.He sells all the renters insurance.  

I’m wondering on the process of getting things in order to rehab the house through insurance and put it up for sale.

If I were you, I'd pass on this property and look for something else (and I suggest a 3 BR) under $80 that you can put a little rehab into, unless insurance pays your family member a bunch of money and they accept a much lower price. 

They have no ****ing idea.Your $500k salary likely has a 401k, health, vision, dental, etc.

Make an insurance claim and buy all new stuff.

Most of your expenses on the Dallas property are property taxes and insurance? 

You want an investment that pays for itself, including mortgage, taxes, insurance, maintenance, and even some money set aside for a reserve to cover vacancies and capital expenditures.

For us, we have insurance on it and found it easier to keep in the trust vs. llc and have to deal with state filings etc. 

With that being said we tend to see a lot of CA buyers relocate here for the lower cost of living including lower home values, property taxes, insurance, no state income tax, gas prices etc.