Personally, I hold properties in an LLC (all banking is done with a separate checking account in the business name) and insure for roughly what you have in your first quote @ 100k liability and $5k medical.Not sure who you got your quote from but it seems a little high for the value of the property.  

I’ve had luck with two small local banks.

Given that the bank has not given out the full value of the loan yet given the 7 year time frame.

Though I would recommend talking to a local bank and accountant for there opinion on how this could work. 

I will be using a friends money for the down payment on the home going through a bank to acquire a conventional loan.

Wanted to know about owner financing, last year I paid cash for a property ( Pennsylvania), and re-sold it on payments, (I'm the bank). 

Are most new investors getting a mortgage under their own name and transferring it to the LLC?

Hey,Has anyone had any experience purchasing excess bank real estate inventory?

You won't be able to sell it to yourself, and a bank won't lend to a new LLC  unless the owner signs as personally liable anyway. 

You will have to show mortgage company your bank records.