You have to have the personal protection either way, at which point the LLC is less important.An accountant once warned me to be careful about using the LLC to manage the properties if they are not owned by the LLC because it could potentially trigger taxable events. 

Today, a day before the showing she said that she will be coming home around the time I am going to show the room to the potential tenant.

Potentially looking at living in my first property for a year as this would be $300 - $400 less in current rent, while I fix it then rent it out after that year.

Use online resources, public records, satellite imagery, and neighborhood data to assess the property's potential.

If everything is up to code, mortgage approval should be straightforward for potential buyers.

I have been approached by a number of companies who provide housing solutions for individuals with special needs and think it could be a fulfilling partnership, but want to make sure I am mitigating risk and protecting myself. 

Will be a builders risk policy .

This is more of a risk avoidance strategy and other people will have different opinions than I do on this.

Looks like it could potentially double the payment making it really hard to profit from the property and keep it up to the level it needs to continue having a decent asset.

If it is the seller, are you confirming they added builders risk coverage and all other insurance is suitable?