If the total housing payment including taxes and insurance are $3000/mo, then you'd have to qualify for the remaining $750/mo payment.

Ultimately our goal is to not have to do a personal loan under a insurance umbrella and have a multifamily real estate property under our LLC for protection purposes.

The advantage is that the holding cost would just be the Reno money and no mortgage,insurance or utilities.

As long as it doesn't cause you an undue hardship, like your insurance will drop you or raise your rates. 

@Alex Hogle The right people depend on your needs: lenders, bankers, money people, GC's, property management, insurance, etc.

Do you know already what it will cost you to get a loan and are you counting closing cost, insurance, and proper taxes, what about capex?

an option to lower costs would be to consider  slightly higher rate …...title ins is likley needed to provide assurance and insurance no liens have been placed on title since the last loan was made ...if they are asking for funds upfront , before the loan closes - do not use them  ...if the costs are to be paid at closing - this is standard ….she should be able to  roll  any costs into the new loan if there is  ample equity

Your other option is just to buy more insurance, which is perfectly fine and probably cheaper then setting up a LLC

Cleveland may be in the rust belt, and there may be a steady population decline attributed to that fact, but there are a bunch of stable industries in the area that makes it unlikely that Cleveland will have a rapid decline like Detroit.Anyways, let's see some major industries in Cleveland fail before we start calling it out as a potential Detroit.

@HAILEY ERSKINE Good for you, get the ducks in the row, start collecting 1) realtor, 2) real estate attorney, 3) cheap title search, 4) CPA, 5) Contractors (handymen, electricians, plumbers, roofers), 6) Insurance.