If private companies continue to provide the insurance, I suspect we will see further increased premium costs which will need to be reflected in the rents tenants pay (all tenants: LTR, MTR, STR).  

It's costly but that's what is expected.  

If they support a rent increase, you could look into raising your rents by that amount to offset the cost.

I'm looking at monthly cost to seller vs. anticipated rental income, purchase price relevant to the ARV of the area and interest rate, balloon, etc.

@Eric Lowe Here's an article with cost segregation FAQs.

Seems like it's in a lower end area so if it is filled you will have tenant issues and turnover cost.

Experience Purchasing from Non-ProfitsPurchasing property from non-profit organizations often involves additional considerations compared to typical transactions:Decision-making process: Non-profits often have a board or committee that must approve property sales.

If you are planning on living there (ie in 1 unit) then you are house-hacking and this is a different calculation consideration then renting out both units and making it a true investment.

I was wondering if there would be any advantage creating a LLC or business to pay for the renovation costs.

If your goal is passive income, it's not going to be in New Jersey when you factor in cost to purchase, management costs, and rent to price ratio, but what you can get is steady appreciation.