Insurance is likely 100 a month based on other parks I own in the area. 

Check out the Neighborhood Assistance Corporation of America (NACA).NACA was formed in 1988 and provides an affordable option for potential first-time buyers:✅ No down payment✅ No closing costs or fees✅ No mortgage insurance✅ No consideration of credit score✅ Below market fixed interest rateThere are several requirements to be eligible, starting with attending one of their workshops.https://www.naca.com

Insurance is your first line of defense with liability.

It was a standard local realtor and lender deal for a first time home using an FHA loan.

Just used the builders standard financer with the intent to use the home as my primary residence.

Bad:Relying on insurance.

As others have mentioned you can take a different kind of loan out vs the property and then pay that off with standard refi.

Keep in mind that are not appraising "replacement value" like an insurance company would use.

What’s the point in having an LLC if home insurance gives liability coverage? 

Even if you have to pay more for the purchase think about the costs of carrying the real estate while waiting for the approvals  (debt service, property taxes, insurance, maintenance for the in-place tenant) and the additonal finance charges associated with originating an acquisiton/bridge loan and then a construciton loan at a later date.