It protects real estate owners (and investors like me) from liability for environmental contamination that they did not cause.

However based on what youre saying the seller had zero liability then since every document was in English.

I am quoting insurance companies and for liability coverage, I was wondering if the liability coverage should be approximately the same value of assets that are within the LLC (in this case, 1 house of $170K), or, should I have a much larger liability coverage ($500K-$1M)?

I think of insurance as what covers disasters (fire, flood, medical liability, etc) and set my deductible at 5% which makes for a lower premium.

If you hold it as a rental for 3+ years, you have created a tax liability that did not exist before.

Make sure that you have a good Release of Liability, as an addendum to the lease.  

You want to maintain anonymity and protect yourself from liabilities at all times!

You need to account for Permitting Cost, Construction cost, Financing cost, Insurance costs (Builders risk & General liability), Holding costs, Selling costs, and contingencies for cost overruns.Any specific questions don't hesitate to reach out.

Make sure these expenses fit into your investment plans and budget.In short, while you don’t have to set up an LLC before buying your first property, it can definitely offer some solid benefits like liability protection, tax flexibility, and a more professional image.

You also risk:1) Committing mortgage fraud by misrepresenting the property and/or how you're using it.2) Exposing yourself to liability if the 3rd renter discovers they are in an illegal unit.3) Voiding your insurance.