Or is it standard procedure and something that will be handled at closing?

My math with your numbers would be more like this:Acquisition:Asking: 290kRepairs: 15k Total Acquisition: 305k Revenue: 28,800Taxes: 4583 
Insurance: 1800 Cap ex: 2400PM @ 10%: 2880 Total: 11,663NOI: 17,137 Cap Rate: 5.6% Cap Rate w/o PM: 6.56% Not a crazy return but pretty normal to see in Miami if you're purchasing in middle to upper class neighborhoods.

As for the LLC - do you recommend what kinda Insurances should I be taking ?

I would like to start flipping so I'm saving to get licensed and insured this way I can bid on bigger jobs.

They will probably re-list with a lower reserve or send out for more standard MLS driven REO listing.

I HAVE A HARD CHOICE TO MAKE,MOTHER IN LAW 'S HOME IS A REVERSE MORTGAGE HOME,BUT IN FORECLOSURE PROCESS FOR INSURANCE LAPSE AND UNPAID TAXES.

You can offer to move them into the newly renovated unit at the increased price and with a standard lease.OR you can tell them that the rent is going up $50 every 6 months until it hits market and that you will be requiring a standard lease going forward. 

The insurance estimates I got was $900 annual premium for each duplex (at $140K replaceing cost).

And the lender hasn't looked at the property, other than to fill the address into his standard POF letter.  

First batch with postcards using first-class, then follow-up with yellow-letters using standard mail.