How do you know they are getting the repairs done properly? 

I guess my question was not worded properly.

Many people don't properly run LLC, so they have an illusion of security more than actual security.My best advice is have good liability coverage limits on your insurance.

IE you cant make a loan on a primary residence without full dodd frank and license .Now there are a few lenders in the Los Angeles Market that are properly licensed to do these loans.. but very rare any where else.check out these lenders.Lima oneLending homevisio Civic Dominion for what you describe a 10% apr could be had as long as your credit is decent.  

Get a properly screened renter (thru a reputable property management company) who signs an annual rent agreement that pays you with ACH direct deposit monthly.

Vetting properly should reduce this risk but I'd at least want the security knowing that we're not tied to living with each other if there are issuesAside from these two questions I have for the builder, is there any other question you'd recommend I ask the builder? 

Regardless of setting up an LLC or not, get proper insurance like property, liability and professional.  

Make sure you do proper research on your target property and area and carefully assess your financial situation and goals before you embark on owning a property.

There are so many resources within to prepare you properly for RE investing. 

In a properly-designed, maximum over-funded life insurance policy, the cash value should be approximately 85% of the first year premium.