So you can be sure that the house is being treated as an asset and not as a liability, since you will only be relying on your active sources of income. - We want our assets to work for us! 

Price is definitely going to need to be lower unless this is a super desirable area.Gross Rent $414,000Vacancy Loss $33,120 (8%)Management $41,400 (10%)Interior Repairs/Maintenance $20,700 (5%)Property/Liability Insurance $12,000 (rough guess, used $300/door/year)Property taxes $40,000. 

I would also talk to your agent about a liability rider to Co er any accidents that may occur with the workers, just in case a GC or contractor isn't carrying the required insurance.

The problem with that is, you are insuring a business activity or liability, as defined by the IRS, on a personal lines policy.Hope that helps.Ivan

Do I need to set up my LLC in a different way to account for the liability of the investor & myself?

You open yourself up to a lot of liability as you are responsible (at least in Maryland) for maintaining existing utilities and are then responsible for their payment.

Given the complex structures, the additional costs for licensure and compliance, and the additional record keeping and reporting requirements, along with liability for examinations, they would need to charge the associated company far more than that company would be willing to pay.

This looks like the place to be.Do any landlords here have insurance policies that cover personal liability with regard to tenant mold health issues.

A lot of Canadian investors opt for a limited liability limited partnership (LLLP) which might be a good option if you're going to be a partner. 

This election will help you minimize self-employment tax liability.