On insurance side of things, there is a lot of variables.

A Illegal simply starts a business entity , gets an EIN and insurances .

Rock that for about 12 months and add some equity and then you could refi out to conventional so as you pay it down in the future the mortgage insurance will drop off.

Quote from @Erick Pena: A "good" rental property is one that covers all expenses (mortgage, taxes, insurance, maintenance, property management fees, and any other costs) and still leave a surplus (commonly referred to as cash flow).Calculate cash flow as: Cash Flow = Rental Income − Operating Expenses − DebtThere's much more to it, but that's the basic idea.

For example, we need proof of renters insurance and proof they put electricity in their name.So, it seems odd that you are accepted but they keep wanting more information. 

Make an insurance claim and buy all new stuff.

However, you would not be able to get title insurance

In my home market of Florida, our insurance rates have made it much harder to have positive cash flow on a CRE deal.

Also, keep in mind if it causes an undue burden on you or is too costly you can deny them. for example, if your insurance company says that dog breed is on the ban list then you need to find out how much it will cost to insure them. if the rates go up because of the dog then you can deny them based on the undue burden. 

It can rent for $3600/m Using 615k ARV and 75% LTV with taxes and insurance my payment is: $4267.