Also, when you obtain your insurance it will be land lord insurance and your insurance company should  provide you with some liability coverage (300k?) 

If anyone is wondering why I have to borrow the full $500k it is because we were underinsured due to a combination of my lack of experience with commercial property and our insurance broker not properly advising us on what the policy amount should be.

Are there any qualifications that they do need, such as being licensed in the city, or having insurance?

Like anything in life you have to build relationships first and then nurture those connections and learn as you grow.  

A quick question on entity structure and insurance: As I'm planning on investing in multiple properties over the long-term, I'm considering forming a series LLC in Texas, which has several benefits in terms of administrative cost reduction (relative to having an LLC per property).  

@Jeremy Brown,Does he have any insurance that can help keep his rent current while he's laid up?

Despite my plans on getting the house insured fully as well, regardless.We were going to take this project on as it was a location my fiancé and I liked to live in and we liked the two houses if it was not in disarray lol, as well as the one acre of land. 

Did all these "investors" just attend a Real Estate seminar and get all hot to trot to buying into the miserable life of a landlord?

You are already saddled and stressed with debt, I don't think you need an additional dose with hard money, unless the deal is one in a life time.

Always be optimistic in life my friend.