Due to my job and a recent parent death, I prefer to stay in the area for family if I'm going to be using a FHA loan and living in it for a year. 

Title transfers immediately upon death subject to the administration of the estate'.That means it goes to lawful beneficiary pursuant to the paperwork. 

It would be great to know what the liability exposure and obligations are for displacement, damage, medical, miscellaneous up to including death.  

It's not necessary but I would defiantly do this because I don't need the rent for one month(It's not life or death).

. --- Meanwhile, I've been thinking it over and my agent now is recommending 200,000 Death benefit  Universal Life which would be a whopping $100 a month.  

The developers tend to only keep the really strong properties with ultra high quality where they have a great cap rate to cost for return.You have to find a compelling reason for sellers to sell the good stuff like they need to recapitalize, estate sale and kiddos do not want to own real estate, divorce with division of assets, partnership break up, sponsor death and limiting partners want to dissolve and get back capital, etc.Owning the NNN is the easy part.

Also I would look up the disclosure laws in your state because in California you are required to tell any applicant for that up that a death had occurred there for the next 3 years. 

Is this just a verbal or napkin agreement i make with the family member and it just gets done (surely not), or is this something that gets lawyer-ed to death and recorded in the public records?  

Walking into a job site and taking extensive notes to draw you up an itemized proposal takes quite abit of time to do for a job hes probably gonna get nickle and dimed to death for.

If not, it would be better if you could inherit after death  rather than being gifted.