However, far to many new to investing get caught up in the need to form a team instead of finding a deal and get the ball rolling Having never been involved in any lawsuits in 30+ years is a function of doing things the right way for the most part.

Get a properly screened renter (thru a reputable property management company) who signs an annual rent agreement that pays you with ACH direct deposit monthly.

Vetting properly should reduce this risk but I'd at least want the security knowing that we're not tied to living with each other if there are issuesAside from these two questions I have for the builder, is there any other question you'd recommend I ask the builder? 

Regardless of setting up an LLC or not, get proper insurance like property, liability and professional.  

Make sure you do proper research on your target property and area and carefully assess your financial situation and goals before you embark on owning a property.

There are so many resources within to prepare you properly for RE investing. 

In a properly-designed, maximum over-funded life insurance policy, the cash value should be approximately 85% of the first year premium.

Common requirements are that there home has to have functioning roof and walls, utilities, toilets, etc.  

If Tenants are entitled to 60 day notice, follow the lease and give proper notice.

Most of these small houses in the area are less than 900 square feet and don't have a proper laundry room.