We purchased the property for 59K including closing costs, insurance, etc.  

Obviously I have insurance but still frustrating.

One lawyer who quoted me for $3000 for LLC formation advised me to do a quitclaim for LLC title transfer.Thank you!

Have the correct insurance to cover STR activity in your home (Proper and CBIZ are the two major players in that area) AND have an umbrella policy in place.  

I sent an email to my insurance guy asking this same question and he sent me a list of dog breeds that they wouldn't insure.

Schedule C on your taxes is titled "profit & loss for business" so with your STR income now being labeled as a business, (because it is) lenders will want to see consistency and growth in order to be able to use any of the income to offset the STR's debt services.  

Do I only need to use an attorney or do I need title too?

Under the principal called Sixth Sense, section titled, Let Great Men Shape Your Life that he described mentors. 

If you’re the high bid, you may or may not have met the undisclosed reserve.Generally you get clear title, read the auction terms.Always pay for your own title insurance, do Not take the “free” title insurance...it is an incomplete search and recorded liens will be exempt.Payment terms should be fairly obvious...a deposit is required upon acceptance of bid, closing in how many ever days are specified.  

What is the purchase price, down payment, insurance, property taxes?