Partnerships are easy to get into, not always so easy to get out of.I occasionally listen to a podcast done by an attorney and accountant named Refresh Your Wealth that has covered partnerships a number of times, most recently this past April in Business Partnerships – Do's & Don'ts so it might be worth a listen.In any case, congratulations on working on your first investment property, and be sure to say hello if you come to the next RIREIG meeting!

The unit will be a rental eventually, so I would like to reduce liability.A picture of the demolished fireplace is attached.

That really paints a picture.

Again, you probably want something with a few units at a minimum so that if one goes empty you can still cover the mortgage. 

But that's the only way to grow. putting yourself outside of your comfort zone is the only way that eventually this stuffed becomes your comfort zone.Keep your long-term goals and the big picture in mind - you are not only living for free you are also building Equity every single month.

Do they require you to cover a down payment? 

@Brent Coombs covered the Acquisition Loan issues.5.  

In fact, Title 2 CH5 TPC section 5.085 covers this. 

My question is what insurance do I need to have to be covered for this property? 

From google maps pictures (2015) there were 5 additional homes that have been moved or torn down.EXPENSESStick built homes pay for all utilities.Park owner pays for water/sewer of mobile homes.Property taxes $2,000 yearly (166.67/mo.)Water/sewer, Trash, landscape, snow removal, etc monthly average $350There are additional misc expenses roughly $40/mo.Asking price $65k (15 yr mortgage about $400/mo.)Insurance unsure yet.