2. and then, how would you screen out the locations to determine the most appropriate one for you?

Our first objective is to make enough income from rent to cover our expenses, and then move into a single-family home.

I bought pretty much turnkey; I probably overpaid but idc (I shouldnt have major capex for a long time) I'm cash flowing around $150 /door.I know many people who are having problems with some tenants so Screen carefully and you should be okay.

Would this person need to be insured by himself or will my liability insurance cover any damage or injuries?

We each put up an equal amount of our money to cover the down payment plus rehab costs ($50,000 each, for argument's sake), and I get a mortgage for $250,000 (my name only on the mortgage, not both of us).  

If interest rates rise, landlords may not be able to cover their mortgage payments with rent increases.

Also check out a contractor background screening.

@Ned Carey  So my initial thought was to just buy out the ground rent since mine is covered under the 12% cap rate - that would put the break even at about 8 years and change.  

My goal is to invest a property that can cover all my mortgage payment and hopefully some extra income.

Just as a highlight, the property has fire damage, was there insurance in favor of the lender which covers such damage and will that claim transfer to you or should some of those proceeds be used to demolish and clear site or clean up site; will you be indemnified for any future liability if not, etc - point is, I would worry more about your not so common deal rather than trying to find sample contracts of more common deals.