Not many properties can pass the self sufficiency test required on 3-4 units. 

Commissioner , supra , neither the taxpayers themselves nor their agents had been sufficiently active with respect to the real property involved to be engaged in a trade or business.

Would it be sufficient to have the lender call the CPA instead of this person having to risk their E&O insurance to cover your lender's requirements?  

Starting the project without sufficient paperwork can result in monetary fines and cause serious construction delays which can further jeopardize the entire project.Taking too much time.

Your basic insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

Or does your first paragraph address that reality sufficiently?

My advice would be to save your money, put it into a high yield savings account that has favorable terms until you have sufficient funds for a down payment, closing costs, and at least 6 months of PITI. 

So given that insurance in and of itself is not sufficient asset protection a second line of defense should be incorporatedThe LLC will help protect your personal assets if it gets sued.  

Your basic insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

These will do the job as replacements for a while When the actual stove comes in send a note thanking them for their patience and maybe a token gift or gift card.