Do you know already what it will cost you to get a loan and are you counting closing cost, insurance, and proper taxes, what about capex?

an option to lower costs would be to consider  slightly higher rate …...title ins is likley needed to provide assurance and insurance no liens have been placed on title since the last loan was made ...if they are asking for funds upfront , before the loan closes - do not use them  ...if the costs are to be paid at closing - this is standard ….she should be able to  roll  any costs into the new loan if there is  ample equity

Your other option is just to buy more insurance, which is perfectly fine and probably cheaper then setting up a LLC

Purchase price: $100,000 Cash invested: $20,000 Commercial building used to be a tire store, currently a Carquest auto parts store operating.

@HAILEY ERSKINE Good for you, get the ducks in the row, start collecting 1) realtor, 2) real estate attorney, 3) cheap title search, 4) CPA, 5) Contractors (handymen, electricians, plumbers, roofers), 6) Insurance. 

When a tenant vacates or is evicted, does their renters insurance policy cover liability in a lawsuit for damages to the property caused by the tenant?

There may be potential title insurance claims here as well.

The carrying costs for the house are not cheap considering the interest payment, utilities, insurance, and taxes. 

A friend happened to stop by to check on the house and saw water coming out from every wall of the house.He called me right away, I called the insurance company (state farm), opened a claim, and contacted a local 24/7 restoration company who sent a team within 90 minutes.

It has been on the market for 134 days, so I may be able to negotiate a lower price if the seller is motivated.My down payment is 3%, and closing costs will be factored into the mortgage.The amount for principal, interest, property taxes, insurance, and mortgage insurance is around $740-$760/month.