This might cut my income in half, but at that point in time I will have enough cash flow to supplement our lifestyle and expenses.

One in particular is called a DSCR (Debt Service Coverage Ratio) loan.  

In my case I had sewage backup coverage so it was not a big deal.3> Other lesson learnt is insurance agent are suppose to open a claim if you call and inform them.

DSCR is an acronym that stands for Debt Service Coverage Ratio and those loans require no income verification (no tax returns, paystubs, W2's etc...) and the rate is based off the guarantor's credit and the lease amount.I don't think you need to be prepared for longer holding costs with a multi family if the renovations are all done at the same time. 

Does this provide the right level of coverage / protection?

My partner and I are looking to get started in SFR real estate investing as a way to supplement our income.

I'd like to use the commercial space once again and will have the two apt rented out to supplement mortgage, but can't quite get the down payment of 150k together. 

Sometimes they provide rent protection coverage in these cases.

In the case of negligence, where your rental insurance or umbrella policy do not cover you either to the full amount or because of some clause or term which inhibits coverage, you're exposure is limited to solely that property.

It is all about the coverage.