I am already prepared to provide surety (landlord insurance and insurance against property damage, etc.)

Phone calls are not as effective as meeting and talking to someone face to face about what consequences they're asking for themselves.

Any damage will be assessed separately and billed to the tenant in addition to the $500 fine.If a pet has been on or allowed on the Property, even temporarily (with or without the Landlord's permission) Tenant may be charged for cleaning, de-fleaing, deodorizing, shampooing, or replacing any portion of the Property. 

The best approach to do it correctly is to systematize everything.And in that respect, it makes sense to use the same template.You can adjust that template as you go along.There is no point reinventing the wheel.Which is what effective flippers do. 

As such you may not have an insurable interest in this property and even if you did, you would have no way of proving when any damage occurred. 

The seller's (agent's) response was:"owner is willing to go to $235k, it's 5% down within 24 hours, a 5 or 7 day inspection...appraisal ordered w/in 10 days business days from effective date."  

But I had some damage , shingles , about a square and a half blew off 1 of my rentals , I will be using insurance on this one , its not minor .  

I have already checked with my lender and they confirmed that if the property gets transferred into a LLC, the due-on-sale clause will take effect.

Additionally, what is the damage in already having had deposits of profits direct deposited into my personal checking account?

My husband knows where water is getting in, however there is no way to know damage from water as we can't go into the basement.