I have not heard of a Personal or Business policy that covers loss of rent due to a tenant chosing not to pay. 

I definitely would not touch the 3.75% personal mortgage and hold that forever. 

HOWEVER, I personally always prefer to own the entire property.

Prior to this we did get the occasional person thinking it was too cold, but we only get that about three times a year now with 3 pool cabins.  

I read in Brandon Turner's Managing Rental Properties that most banks do not loan on properties owned by LLCs. 

Regarding background checks you can use many different apps or software, I personally like Hemlane for tenant advertising and screening.

The value add will include TI's and renting out the 50% of the square feet that is vacant.The hangup is that in a TIC structure we have learned that every person must bring money into the deal to achieve an equitable split.

Also, as I am in CA, it would be impractical to be "boots on the ground" for an extended length of time to visit properties and  attend numerous auctions in person.

Here's why:People who spend all day crunching are almost never viewing in person.

So now I have three rental units, plus I also rent out a spare room in my personal residence.