This sounds like a significant risk and the price you pay needs to reflect that.

Would that then be ok as long as my insurance and umbrella policy reflect that a tenant is living in that single family house? 

This newly identified risk must be and will be reflected in the rental revenue. in summary rents are going up.Appreciation forecast for San Diego continue to predict high appreciation.  

Your claims experience with one carrier may not reflect the average experience.Any admitted carrier should be fine.

You generally just file a SchC (or SchE for rentals) to reflect the LLC's activities. 

We are trusted by some of the industry's most prolific companies and are proud of these relationships because it reflects our level of service and commitment to our investors' success.I would welcome a chance to talk further and see if our firm is a fit for your needs.  

How accurate is this data and is it a true reflection of the area?

A name that reflects your own chutzpah a name with that Je ne sais quoi quality that will make people grovel and grasp at your ankles proclaiming 'please, PLEASE rent to me!

The term "market rent" is meant to reflect what a landlord should be charging tenants in a given market.

The seller could theoretically lower the purchase price and commission to reflect you "not using an agent" and cover closing costs, but that would be quite the hard sell.From an ex-agent with currently no skin currently in the broker side, buyers who put in offers like this are often seen by listing agents as being way more work than they're worth.