Insurance companies don't want to handle that liability. 

Obviously speak with lenders, your CPA and lawyer, but its very common for folks to start out owning residences themselves vs corporate entities, and just having some sort of liability insurance.If you do get an entity and what business credit, if I remember correctly you just need to register the entity with HMRC etc, and start out getting a credit card with whichever bank you choose to open a current account with.

Better to make sure you don't have extra liabilities before you devote capital to something else.

My concern is if PRP isn't able to pay, will it be my liability as an owner of the record?  

Even though you are his friend, this is a potential liability for you.Tell him to complete his divorce and there will be other deals out there.

Price and profit is one concern, but also remember tax liability, cost for marketing and closing cost, etc.

So it requires deeper pockets and the ability to finance the loan yourself (including taking that liability).

My realtor said no fridge or laundry machines because of liability issue, but throughout the years of renting myself I never had to bring in my own fridge and laundry machines.

IF they even own the asset .. not get their doc's and deeds and all sorts of other VERY routine aspects of a real estate transactions just screams of amateur hour.. and the marketing company just throwing up as much as will stick make their money have no back end liability and laugh all the way to the bank. 

I don't see a lot of mid west rental houses leveraged to the max as being targets personally.I know in our building side we pay a bunch for liability .. this is far more real than the outlier like described above that is the one in a million chance or event..