The two renters should cover your mortgage + utilities. 

The point is, even if you have auto pay, you still need to pay attention to your bank accounts and make sure there is always money in there to cover any upcoming payments.

My friend just contact the sponsoring broker who proceeded to say she was requiring a $1000 sign on fee to cover many things, I'm aware of MLS fees but is this normals practice?

We will be covering some of the issues discussed above.  

Buy a couple and read them cover to cover

They will then try and sell you a policy that does cover all your risk, but I believe that premium will disqualify this property from being profitable. 

Seems like you have it covered.

If you put it in an LLC name you may find some tax benefits but you will need to then set up a landlord policy (more expensive than a primary homeowners policy) for the building then purchase a Renters Insurance policy for your self to cover your property and personal liability.

I'm a small business owner and my wife is a real estate agent (and ex interior designer), we both have 700+ credit scores, but not enough cash on hand to cover the difference between the usual 70-75% loaned by hard money lenders and the total cost of projects in the Tampa area.  

Hi Folks,I recently want to re-evaluate my rental properties insurances as well as looking into umbrella insurance to cover them.