If you self manage, failed to shovel snow, someone slips and falls, it's YOUR fault, not the LLC's fault.To top it off, he was sued for $3 million, and the insurance only covered the S Corp for one million, and ironically not him personally.

Tenant shall, at Tenant’s sole cost and expense, obtain renter’s insurance covering the full value of all personal property of Tenant in the Premises, and providing liability coverage to Tenant in an amount not less than $_________, which policy shall name Landlord as an additional insured.

If we can't cover the closing cost, do we go for a hard money lender?

We currently rent 1 of our 2 homes, but my question is will a lender be willing to lend someone a 3rd home loan so long as they have their other homes rented out to cover the mortgages?

You may be able to buy these homes cheap, but the rent won't cover your expenses over the long term.I am not a fan of multi-family or commercial. 

Also if the rehab costs are covered or not and where that money is going to come from.

I know the guy can afford it because he is paying the same price now in a worse location, plus he gets a monthly pension from the military which easily covers his rent. 

I understand that the property will still be covered by my personal liabilty insurance, but I would like to move the other business aspects into a separate business identity.

The deal makes sense for my COC and $/door minimum criteria, but as i've listened to more experienced people on the podcast, i'm wondering if i need to add a criteria for annual profit to be >$5000 per property because it seems like that may cover potential disasters/capex problems that occur without wiping out property profits for multiple years.

Or a bank that portfolios their own loans (not sure about the details on those two), but if you do a normal loan covered by Freddie and Fannie guidelines its 6 months.