The original plan was for the tenant's side to pay 100% of the mortgage / taxes / insurance / PMI, while I cover trash and water for both sides. 

- Regarding liability, definitely consult an attorney and or insurance agent regarding the type of coverage you need.

It's not that hard, but if you've never done it and are nervous, it's not a bad idea to hire a realtor to walk you through it.2) You pay a title company to research the title and get title insurance, same as if you used a realtor.3) Not really - but like you said, guidance and knowledge are worth a lot.

Unless the tenant vandalized the property your rental insurance pays for damages from such instance.

Is there insurance?

There are some HOA's out there that will only allow a certain percentage of units to be rented out and may have some other restrictions in the CC&R's.As for your question, the "best" way of doing something in real estate is typically subjective, but having a HELOC payment, in addition to the mortgage, taxes, insurance, and HOA dues, just increases the chances of having a less profitable property or one that may not cash flow at all.

This movement has the effect of making the lower income neighborhoods worse and keeping the rents stable in the higher income neighborhoods.ANYWAY, to make a long story short as there is MUCH more to add to this analysis, this particular effect made the financial crisis of 2008 barely noticable to my properties as they all were within the higher income neighborhoods.In 2007, the values of my properties had peaked.

Personally I choose and LLC for all my properties.Of course LLC or not you need good insurance.

@Aram Velazquez Our primary house has only me on mortgage yet when getting investment property on my wife’s name, lender considered her responsible for 100% of Insurance and property tax (because title is in our joint name).

Is the home owners insurance covering the cost?