With all of that being said, my PM stated that you cannot legally require that a tenant carry renter's insurance.

An owner occupant heavy neighborhood is going to carry less risk than a renter heavy neighborhood.

That means you establish a Traditional LLC to carry out the operations of your investments, in order to separate the liability from your assets, including: paying property management, paying contractors, collecting rent, marketing, etc.

I take the purchase, rehab, closing costs from the purchase, carrying costs, and the closing costs from the exit.

Then add in rent-ready costs and eating up carrying the entire mortgage note while you find tenants....it can set you back even further.

We allowed it, with the requirement that our tenant carried a specific coverage on her renters insurance for it, because it is not one of the breeds specifically excluded by our insurance (such as pit bull, bull dogs, etc).  

When they walk through a property they carry this list around with them. 

Bonus depreciation may be going away so it may be a good time to stock up on this type of depreciation since it can be carried forward.

I also carry a $2M umbrella policy that around $1,200 / year.

Now you are carrying the house upside down for an extended period of time.