Also keep in mind, most e&o insurance policies will not cover you when you are a principal in the transaction.

I called the mortgage company to see if they would be okay with us transferring the deed over to the LLC, but they told me no and that it's against their policy. 

So you and your agent need to look at the data for comparable pending and (very) recently sold homes, as well as whatever active homes may be available - because solds and pending aside, the value of this prospective home will be comparatively lower if there are 15 similar homes on the market for buyers to look at compared to if there are just one, two, or zero other homes like this for buyers.And I know it's tough with HUD homes because they don't take escalators, but in the end, armed with your market analysis data, you need to bid your 'walk away' price, meaning that if you bid a dollar under what it goes for you'd be OK with not getting it, rather than kicking yourself and wishing you had bid a dollar more.

Carrier and annual pricing below for similar policy limits and deductibles. - Foremost ($2650)- Tower Hill ($1100)- Proper ($3900)- Travelers ($2500)- American Modern ($1350)Thanks in advance for your input.

I have done this before and I have been getting bombarded with calls/emails asking me to go forward with my "new policy" and no matter what I say..these guys keep calling. 

This is what you get when for decades you pursue a policy of endless "California lifestyle" of single family homes and single-occupant automobiles connected by roads wider than any reasonable person, except for a traffic engineer, would ever conceive of.Our politicians are business owners and landlords too, of course they want to perpetuate the status quo.

You may also run into alot of banks that will not give you a construction loan with zero experience.  

@Geo CruzBased off information given, if you pay anywhere close to market value there is zero percent chance that property will cashflow as a standard rental.

You determine if you need the policy according to your investment strategy, assets in teh LLC, and risk tolerance. 

Cozy.co is what I use to collect rent and bill tenants for any maintenance issues (not due to general wear and tear).You can also use it to track maintenance requests, screen tenants, have them record insurance policies, etc.Did I mention it was free?