I work full time selling insurance and on the weekend I put time into a tech start up my friends and I own.

(it would not be fair for you to have to pay for a lease to be drafted up, pay for landlords insurance etc etc) you should instead be dealing directly with the seller... thus when I say you should collect security deposit, I mean you should collect it from the seller, not the tenant.... whether the seller in turn requests the same from the tenants or not... that is his business and his headache.  

You will appreciate a structure people are familiar with every time you go to buy insurance, deposit security deposits, etc.You can get a tax ID instantly on the IRS site.

They just  count on insurance to cover their risks.An LLC is not a substitute for insurance.

The insurance will vary based on whether you need a Builders Risk policy and vacancy coverage (which you typically need). 

Insurance is another biggie to agree on. 

It took us just about a year from start to finish.Our mortgage tax and insurance is 633 per mo. 

Engelo help me find a GREAT lender to refi the duplex (about $49,500 @ $450 monthly, PITI), and Engelo's other partner Dominique helped me find an insurance companyHere’s my first duplex on youtube: (Engelo is a little hyper – I think to prevent hyperthermia, video was shot in January)https://www.youtube.com/watch?

Commercial loans are generally 20 or 25 years amortization so the minimum payment may be almost as low as a 30 yr conventional mortgage if you factor in mortgage insurance (at least for the first 5 years).

isn't the purpose of insurance to cover accidents/defects?