-The insurance market could change by denying/reducing coverage to addicts, putting this clinic out of business.The way I see it is even if the clinic shuts down and they break their lease, I could always rent it at market rate to a normal family, or I could just sell the property.  

If the tenant causes damage to the property, does builders risk provide adequate coverage?

Following to hear how skimping on the expenses involved in a true double close works out.I doubt a hold-open or a binder provides the coverage that will be needed here.

I doubt your father in law's insurance will accept coverage either as you are clearly trying to circumvent the GC relationship to save money.

Never trust insurance coverage.4. 

These two should easily provide the level of coverage you need to protect the assets you have including your personal property equity.  

For example a DSCR (debt service coverage ratio) type loan looks at how a rental performs to determine how it qualifies for a mortgage.

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.

This was the right approach for us as we wanted to build a portfolio of rentals to supplement our retirement.