But while the plan was always to house hack, I didn't spend enough time looking at what would make the best rental.

I planned to tell them that "I will waive the final 2 months of the lease but unfortunately I will have to keep your security deposit".

An easy math example is $1,250 of rent needs to support $1,000 of mortgage, property taxes and insurance and HOA (if applicable). 

@Donna Beth Perch you just joined BP yesterday, obviously searching for shortcut answers.Your bio states you are an agent, does your broker know you are managing so they can update their E&O Insurance to cover your management activities?

And is that where your also planning to invest?

Buying a property for your mom that you have to put money into each month even after the mortgage is paid off (taxes, insurance, maintenance) will only work if you have significant appreciation to offset that, which is what you probably experienced in California (and I experienced in Canada). 

Having a 24 month term on the front end will also make my job easier doing the take-out loan when it's time to refinance into permanent debt, because there's room in there for a full year of tax returns to have been done in the middle (if your exit plan is to sell, it'll also make it easier on your buyer who will presumably be willing to pay a higher price if they can get an A-paper good mortgage).Ask for a 24 month term, tell your contractor you want it done in a year (and make it financially worth their while if they can pull it off), internally/mentally plan on 18 months, and I'm putting you on notice now to do your tax returns on time, rather than extending them (don't fight me on this, please just do it).Trying to get a renovation mortgage like this for only 1 point is likely a waste of your time, but if you want to ask, after you've secured the above as a 'done deal,' go for it, can't hurt. 

Underwrite allowances for - Vacancy, Prop Taxes, Insurance, Utilities, Repairs & Maintenance, a Reserve Account, and Property Management. 

Insurance typically is not paying for what they consider "intentional damage" and suing a tenant for damages doesn't work if they have little to no money to begin with.

It could very well be the route that is "cheapest" now, ends up being substantially more expensive down the road.If the costs above are not worth it to you...maybe pass on the LLC and get yourself a good insurance policy, and maybe an umbrella policy personally.