Now I feel a little frantic trying to find the right insurance,  get our LLC set up, bank accounts,  etc.

@Jason Allen a wise question, but there's no specific industry standards in the SFR area, like there is for MFR.Read below for what we use:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.When investing in areas they don’t really know, investors should research the different property Class submarkets.

But stick to a set of standards and don’t fall for a story.

While some lenders could have stricter guidelines when it comes to length of rental income history, these are the standard conventional guidelines that most lenders follow.

Replacement - Insurance Payment = Deductible..?

My plan is to rent out two of the rooms to help cover my mortgage payments.So far, the property appraisal has been completed, and I've set up home insurance.

Licensure, insurance, business lines, etc would be all mashed together. 

Only insured what you paid? 

We get a ton of contractors, relocating families and insurance claimants.

That almost defeats the purpose of trying to attain wealth.Regarding having a small business, you may be eligible for different types of retirement accounts, deductibility of health insurance and other things.New Jersey also has a complex tax system - It may be worth while to work with a CPA in the tri-state area.