You could go conventional investment property, which would require 20-25% down anyway, or depending on the deal you could get a Debt Service Coverage Ratio loan where they base the loan off the income the property generates. 

The Insured asked for coverage under his title policy, and I denied liability because the policy had exceptions for survey matters and parties in possession. 

I would keep the security deposit the same and if you don't already have Renter's insurance with the Landlord as additionally insured coverage, require it now.

First and foremost you are buying life insurance to fill a need left by your passing so coverage amount is more important that policy type.Am I happy for owning whole life policies?

When a property is unoccupied for a period of time usually around 60 days your insurance carrier deems that as a vacant building and will lower the coverage on that building substantially. 

Each roommate would pay, say $50/month extra, to get the coverage.

Realtor has been wonderful to get us insurance referals but we are about to lose the deal with post Ian flood coverage underwriting (in COBRA zone) being tumultuous to say the least.

However, if the value is below a certain threshold the bank may not require an appraisal or could even accept an evaluation which is typically lower priced and less comprehensive. 

My lease is fairly comprehensive and does cover installations in general. 

If your insurance coverage isn't enough, they could seize the LLC assets, but not your personal assets.Additional thoughts:1.