Jason Aurelius Sawicki I borrowed from 401K to buy real estate and have zero regrets.

I'm not an insurance expert or a lawyer, but I would imagine the homeowner insurance policies of the current owners would cover a tree falling. 

They constantly offer zero interest promotions.  

Over the time even with zero cash flow, it's gonna build up something better than my 401k for retirement.

I purchased a home last year and the insurance company (Allstate) contacted me a few months after closing stating they did a random drive by and my roof didn't meet their standards and I'd be dropped from the policy if a few minor issues weren't corrected. 

What's your risk tolerance?

Or you can sell it down the road (after 2+ years) and pay zero capital gain tax. 

I haven't done this yet because I'm not sure if I can get an umbrella policy to cover all my assets especially if I have some in a trust and some in LLC, or if I should just put them all in the trust.

I would say there is a less than one percent chance the seller did not know this if they rented out the property and zero percent chance if they lived there I would call your realtor and tell them of the situation and have him ask the seller about this.

As Ozzy says it has a lot to do with your goals and tolerance to risk.