For the contract I would speak to someone that can help you with the legal terms and conditions 

You cut the life of second layer probably in half.

Serve them notice, evict them and move on.Your life will get really easy when you have quality tenants that pay on time. 

I'm just looking for some advice from more seasoned investors since this is my first deal and I don't know anyone in my personal life with experience on investing in real estate.

The auxillary fields with less weighted value, in order: lease start date, deposit amount (up to 2x rent).The overall score is tallied to identify approval, conditional approval with increased deposit/cosigner, or denial.

Also, your preference of location and condition may restrict your opportunities if you are too picky. 

Secondly we are about to move, and I'm considering a house that would need a more major rehab than we have ever undertaken in the normal course of life.

depends on location, in a city they should be within .5 mi, in a suburb 1 mile and rural  5 miles but unique properties can be stretched further, I have done thousands of BPO's for banks, the rules were 3 listed and 3 solds, within 20% speck and similar condition, and make appropriate adjustments for differences, there is more art than science to it.

It's a nice location and in good condition. 

I’ve never filed a property insurance claim before in my life until this week.