Does anyone have a contact in Muscle Shoals area who could help us finding what we are looking for?

I read of a condo complex where the city declared it unsafe, condemned, locked every one out, when water and gas was cut off because the HOA couldn't pay the bills.

There are also the By-Laws, Declaration, and House Rules (sometimes collectively "DCC&R") that spell out what your responsibilities are, what are HOA responsibilities, and how those responsibilities are to be carried out by all parties.To learn about HOA's check for a local chapter of Community Association Institute, they have great resources for Owners and for Board Members that are, in theory, running the HOA. the CAI explains how they are supposed to be operated, based on State laws and Best Practices.

We usually don't put our own primary homes in an LLC...most states provide us with some shielding and usually our state provides us with some type of property tax break if we declare that home our primary residence in our name. 

Perhaps there's some way of having her declared a risk of harm to herself and others and removed from the property for her own safety.

Owning real estate directly forces double declaration of the income.

I wouldn't mandate them use a specific company, as long as they show you the renters insurance declaration page with the appropriate coverages you should be fine.

I have a rental property that I am the owner of and was wondering what is the best strategy to go with is is create an llc and then business license under that to manage the rental and for taxes go with an s corp or would I not do an llc just create a business and business account get an umbrella coverage and for taxes declare an s corp?

I have also found that doing hypothetical analysis of properties is a good way to build my deal analysis muscles. 

Money the landlords never got back because the tenants declared bankruptcy shortly after and became judgement-proof.