There is a cover letter that states:"Attached is  the  security deposit statement.

Sure, you could argue that you'd be collecting rent from your tenants, but good luck finding a multi that has enough positive cash flow to cover the entire mortgage, taxes, insurance, vacancy, maintenance, capex and your living expenses, food, gas, utilities, etc.

The problem is that 50% of the walls in the house are covered with particle board (like the stuff in the pic, I found that on google; not from the house) and painted over with glossy paint. 

All this being said, I want to cover myself as much as possible from this.

The PM is covered by the HOA so that's something I wouldn't have to worry about luckily.

They seem to be suffering from recency bias.

Also adding the LLC as additional insured is not effective, as the policy reads that the additional insured is only covered for the acts of the “named insured.”

While it wouldn’t be a long term solution it would allow you to get started and cover the majority of your monthly mortgage / living expenses.

While I don't do a Schedule E for that property, I do have a rent check that covers the mortgage for the entire duration of the purchase and her stay there.Would that suffice?

This way if it was more time consuming, we charge more, but at the very minimum, a $150 fee will be charged.When factoring the cost, make sure that it covers the minimum time just to make it worth it to someone to do the work.