Mine didn't see me needing the protection of an LLC until I grew larger but advised liability insurance.  

Apparently the second buyer terminated rapidly after talking to neighbors who told her the HOA is very slow and reluctant to proceed with repairs.If any of you guys have dealt with a similar situation we would love the advice.  

Get a good condo lender, who knows how to read the budget and insurance requirements properly. 

and a big one, will your insurance provider cover a claim like a kitchen fire if the kitchen was being used for a commercial purpose?

We're in our due diligence period for our first deal, but we're having trouble finding insurance for it.

If there aren't any major red-flags then I'll proceed to make an offer so I can get more time and really inspect. 

*Proceeds after paying off a HELOC were $65K.

When I sent the approval letter with details about utilities, move in date, and the requirement of renter's insurance, he outright refused to purchase renter's insurance.

I believe you can also use a loan servicing company to handle payments/taxes/insurance and everything is kept track of. 

If the total housing payment including taxes and insurance are $3000/mo, then you'd have to qualify for the remaining $750/mo payment.