This seems rather weird that I can’t be covered for something that is completely out of my control if it happens again.

Things you need to get ready: some buyers won't want your tenants what are the costs to exit; can you prove the rents received during covid-bank statements besides a professional rent roll; what are the legal entitlement issues- is this a total 12 unit building or are you a controlling owner in a HOA; HOA budget, CCR's, rules...

Total government control of the economy and total laissez-faire policies are both disastrous.

Real estate is a great investment but it's gritty and required time and is stressful.For you I recommend buying a new build condo or town house and renting it out right away or being the financial partner in a joint venture partnership. any other model does not work with your minimal hassle/time/experience expectation. 

Another thought is that you could lose your shirt if the GP fails in their venture or things go sour.

If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing.

The Housing Authority, in my opinion, wants to control the process by requiring inspection, a 30-day time frame to inspect thus you lose 1-month rent while you wait for them to approve your property.

How important is it to have an on-site management (it would be around 150 units facility, if that matters, with a few temperature controlled units) ?

For reasons out of my control I can't actually live in the duplex.

ValuePenguin is a good source for the relative cost of insurance by state.Operational Costs - Costs like property taxes, insurance cost, state income taxes, regulatory costs (ex: time and cost to evict), inspections, rent control, etc., have a tremendous impact on your return.