It sounds like you need to consult with Eviction attorney, CPA/ Tax professional, Great Realtor and Lender for this.

If you have 3 properties you own for cash, that cash flow is good so I would think about the HELOC because that will adjust the overall cash flow of the units and add another liability.

They ended up losing a property worth around 1.5 million for back taxes of 25k.

What other insurance options do I have to protect myself from liability?

Rent: $4,250/ moMonthly expenses (including management): -$600Monthly Mortgage/ taxes/ insurance etc: -$2,550thanks

Market research, local expertise, networking, property management, financial planning, potential legal and tax ramifications, risk management, and long-term vision are important factors to take into account.

I am looking for insurance to adequately cover my liability as a potential STR as this is not my primary property.

Can I deduct expenses (utilities, mortgage interest, taxes, etc.) on a Schedule E for my 2023 taxes?

A reference for me to keep track and make the year end tax paperwork easier. 

@Nicole TuffarelliI am aware of a few groups that can usually utilize funds from an IRA to help purchase new homes at reduced leverage (usually capped at 70% LTV).It might be more beneficial from a tax-standpoint as well to do it that way instead of drawing it all out.