I recently completed a major renovation on my property financed through a Fannie Mae HomeStyle Renovation loan, and I'm now looking into options for removing Private Mortgage Insurance (PMI).

I have, however, gotten other tenant types form Zillow - mostly insurance relocation claims

Tim, in lieu of a damage deposit, have you utilized A deposit insurance such as Rhino? 

Licensed and Insured, of course.

Using escrow company & title insurance will protect you from an unwanted surprise.

We are finding conflicting information as it pertains to insurance and liability. 

I own a lot more than 2 homes and all these years later still have never bothered with LLCs - I just keep really good insurance.

All the hard money lenders I've worked with in the past (and the one I currently work for) deem an appraisal necessary for risk management purposes to insure AIV and ARV estimates are good.Curious how you'd manage risk without one? 

I don't think it should matter if the deal is seller financed, cash, or hard money; the title search and insurance process should be the same.

Lastly, make sure your tenants have renters insurance to cover their property.