I did have a contract with them (paperwork to prove it) and my loan wasn’t declined as they forwarded wiring instructions to title and closing attorney (paperwork to prove it) and the wire didn’t come.

The deal cash flows at about $1000 a month BUT the insurance company will only do property replacement coverage NOT liability.

Insurance is NOT all the same.  

But the room rental search/filter option isn't there...that listing just has it in the title.

Does it cloud title? 

The title of the property would be transferred to the new LLC when you close on the refinance.

Secondly, what can that mean to any insurance claims.

3) Do I make it mandatory to have me added as Additionaly Insured?

Also, during those 2-3 years you may have to bear to obtain possession, the borrower will probably ignore court orders to pay insurance and property taxes, leaving you out of pocket for those costs.  

I see that you required contractor to have General Liability and workers comp insurance.