I do realize there are exceptions and some sub to may offer low down payment but I suspect by the time you limit to sub to and low down, you are likely at 0.1% of offerings. 

New to all of this, need to insure home for rental.

Some cities do require them to register and have insurance, but that is no guarantee of the work or quality.While many will fight you on this, my suggestion is to never pay up front. 

There have been several examples of $1M+ listings that are still receiving multiple offers, and many for all cash. 

Some hard money lenders may offer better leverage but the interest rate and origination fees will be higher.  

Market is the best remedy for those, since no intelligent buyer/investor will touch what they offer.- Sellers who are lied to and taken advantage ofHow exactly are they lied to and taken advantage of?

There’s no money-back guaranteeThe most reputable programs will offer some form of money-back guarantee.

Commercial lenders don't usually offer 'pre approvals' but will provide sellers with a letter of intent.

Any tax or insurance re-allocation, let a capex or vacancy expense and you'll tap out. 

@Megan Stone good to hear this attorney offering you excellent advice even though it isn't in their 'best interest'.I've always established my commercial RE LLCs in the state of the asset.