Yes, the builder's preferred lender has offered me this:"To do it, I had to go with a FHA loan, buy the interest rate down to 4.5%, and increase the down payment to 11%...we will pay the Owners Title Policy plus $2k towards the closing" costs."

It looks like some people are recommending to hold in your name and just have good insurance and possibly an umbrella policy.

At least as of a few months ago they didn't seem to have a hard policy in place across all markets, but maybe that's changed lately.I personally would find out or run a test with opendoor, make some connections and see what is plausible personally as it could depend on which market you're in, which rep you get etc. 

If you have concerns or risk factors there get an umbrella insurance policy to protect yourself. 

What I’m doing with my properties is I am getting the financing in my name, using an umbrella policy until I have paid off a property and will then transfer them into an LLC.

When you say that the title co sent you an amended report with this removed . . . did they list this as an exemption on your title insurance policy, or they removed any mention of the lien from the soon-to-be-ex?

I had one insurance policy for both the front house and back house.

Require a lender's title insurance policy.

The information is here.https://www.hcd.ca.gov/policy-...

The tenant is committing or permitting to exist a nuisance in, or is causing damage to, the rental unit, or to the appurtenances thereof, or to the common areas of the complex containing the rental unit, or is creating an unreasonable interference with the comfort, safety, or enjoyment of any of the other residents of the same or adjacent buildings. 4.