I am not familiar with Washington Laws, if the property is in Washington, regarding tenant discrimination or if they have a law in place which is more stringent than the ADA (And various other act)However, my first question would be can the prospective tenant provide adequate documentation stating that the animal actually service animal and has been trained accordingly?

The main things I would want to verify with your attorney is that you are correct in that this is a tenant expense and to be sure you have adequate protections in terms of "hold harmless" language in your lease copy.

.- asset protection from creditors in some states- borrowing money from the policy does not show up on your credit report or affect your FICO's- Privacy since the life policy does not show up tax returns and financial statements, unless if you claim it- Provide liquidity outside of qualified plans like roth IRA, IRA, 401k, 403b, defined benefits etc which have high restrictions on access to the money, potential withdrawal fee's, federal and state income taxes, age requirements, req min distributions potenially, limited access to funds (lesser of 50% of 50k on 401k's), guidelines to adhere to, and moreI think qualified plans are a good part of the overall financial plan and can be used to great advantage for RE investing along with correctly structured life insurance to provide adequate liquidity since most real estate is not very liquid and credit is not always available to obtain the access to capital that you may need (tailored to RE investor audience) especially in an emergency when your credit tanks or borrowing guidelines are constantly changing.Not all life policies are created equal and there are many different types of life policies from Variable universal life, whole, participating whole life, indexed universal life, straight 20 whole life, survivor joint life policies, term life policies, and more.

I have a few months to do adequate research to make sure I am as prepared as I can be.

And your "you could lose this much" scare tactics are not adequate.

Yes, it cost money but I wanted to make sure I was adequately protected. 

That makes sense in general for investment REITs but not when the risk is so far from an adequate return for such a liquidity trap.

Without knowing much about the Bergen County market, typically its either an exposure problem, incorrectly priced, or not priced adequately for the level of rehab completed.

Since taxes are so important, I'd like to know if you guys think Turbo Tax is really adequate at getting the job done.

You need to have an adequate reserve fund in place, no matter what size of property you are dealing with, otherwise it can eat you for lunch.