if the rent stays as is, its not a good deal because the mortgage isn't even covered. thanks!

I would raise the Vacancy Reserve to 8.34% to cover one month of rental income.You might want to include exactly what you are not sure of. 

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.