Over the past 7 years my insurance has increased 65% and property taxes another 20%.

The reward should outweigh the risk, so if you're on a mountain top..... disregard :)But then you have to manage it and worry about insurance. 

The industry standard is 6 months to a year before your first closing.2.

Is general industry standard to have 3-4 months PITI reserves in bank after closing?

Many believe and advocate that filing a homeowners insurance claim will lead to higher rates, discouraging claims altogether.

How often should you shop your insurance for multi family buildings 

I would see if companies like first american and other large title insurance carriers have courses (see below).First American Eagle Academy 

The lease is a rent-to-own and states he only needs to pay enough to cover the expenses "taxes, insurance, repairs" etc. 

The best part about Reno / Tahoe Nevada are it's landlord friendly, Real estate taxes don’t reassess on the sale, insurance is low and we continue to have increased in migration, jobs (no state income tax) and our own land constraint issues which prevent the market from getting overbuilt. 

Do you need liability insurance (likely).