I am being asked if the units have students in them, which seems to affect the rate and then getting a replacement cost and a coverage quote that are very different, lastly I have some agents that I spoke with that never call back?

Call all the title companies and all the REIAs for a real estate attorney that has been representing real estate investors.My paperwork for a sub2 includeThe Purchase and Sale Agreement Seller's Due-On-Sale Acknowledgement The Quit Claim Deed to Trustee Get an Authorization to Release Mortgage Information Get A Limited Power Of Attorney Updating the Insurance Coverage Controlling the Escrow Account If The Mortgage Company Calls the Loan Due Addendum to Purchase and Sale Agreement Quit Claim Deed to Trustee Authorization to Release Mortgage Information Limited Power Of Attorney Regarding Real Estate Insurance Letter (Adding Additionally Insured) Escrow Letter Letter to Mortgage Company 

If I lost in court and exceeded insurance coverage, does this scenario better protect me that I only lose maximum (say 5% of the property value) of the 1st LLC (as rest are holding by a master LLC?)

Your comfort with how these options affect your coverage is vital for you to make an educated decision on which option to carry per property.

Well, a note purchase is not a real estate transaction, have the attorney take care of the matter, go to the transaction where the note was made and contact that title company to see if title coverage was obtained for the note, a "Lender's Policy" usually free with the Owner's Policy, if not, inquire about coverage if you are keeping the note.

Also, will set him up with the PA Standard Residential Lease, which I've found to be very good and comprehensive.

Once filed, generally speaking, the seller will have a difficult time trying to go around the optionee (presumably, you) and sell the property to third party unless the third party will purchase the property without title insurance or purchase with the option as an exception to coverage.

Cost was $60/ month and that is with an extra $10 for sewer back up coverage.

This agreement should indemnify your entity, set the type and limit of each insurance coverage and add your entity as an Additional Insured. 

Out of all of the NY real estate meetups this one is the most helpful and comprehensive.