Pulled the trigger and purchased my first house to fix up and sell.  

I know marketing takes money but I am hesitant on pulling the trigger with bandit signs since I do not have confirmation of their success rate in my area. 

Does she need to take this up with her renter's insurance provider or am I indeed responsible for using the electric to dry the water?

FHA has rules.I would read the due on sale provision.Due on sale clauses can be triggered (not will be triggered) by lenders.See https://www.law.cornell.edu/uscode/text/12/1701j-3Consider a "Lease plus a ROFR" with your residence.See http://bundlr.com/b/rofr-right-of-first-refusal

However, in the case where the first mortgage holder triggers the foreclosure process, Does the second mortgage holder step up and make the payments on the first mortgage?

After reading and listening to numerous posts I've finally decided to pull a trigger on direct mail.

Since you bought the place already I don't think you can just turn it over to an LLC without possibly triggering a due on sale clause where they cancel the original loan.

Between MLS and wholesale properties there are definitely deals to be made if you have your funding lined up and ready to pull the trigger. 

If you buy properties using a 1031 exchange and the property you sold was in your name, can you subsequently transfer ownership to an LLC without triggering a capital gains bill from the IRS since its not in your name anymore?

Again, great job on actually pulling the trigger.