My offer was accepted, I was lining up contractors and during the close the bank (BOA) offered that if I used their title company (Title 360 Inc), they would pay for my Title insurance (and save me $800). 

don't forget to account for vacancy rates, insurance and maintenance that you'll be responsiible for as owner.

@Rod JosephYour post states "Mortgage Expense" is that supposed to mean that monthly debt service is $2,600 or is that Mortgage + Insurance + Cap ex + Management + Repairs?

I'm a licensed and insured general contractor who works on New Orleans houses and commercial spaces.

My strategy plan was to house hack a multi-family unit on a FHA insured loan, though I may have to rethink my starting approach.  

I'd recommend reading through your documents and perhaps discussing it with either your lender or attorney.

As to your question: I believe that for any loan over 78% loan to value (an FHA with 3.5% down would have a loan to value of 96.5%) you have to pay private mortgage insurance (PMI) to protect the lenders in case you default on the loan.

No negotiations can occur until after it is listed,the owner supplies all the required short sale documents, and a purchase agreement with a buyer, that the bank deems legit (POF, etc.) is submitted.  

I would ask the seller to present you their previous leases and any kind of documentation they can provide you. 

We've been chatting with insurance brokers and a couple things have come up that I'm not sure about and don't know if they brokers really know either.The property will be owned in the LLC's name.