If you don't want to do that and you want to play hard ball with the developer then come up with a price for them to buy it from you; and make it a good high price.

So for all these reasons, I'd set up a separate bank account. 

Are you finding enough lenders can give you reasonable GFE without needing to spend an excessive amount of time on each?   

Most will charge a reasonable annual fee, but think of it as insurance.Lastly, consider just getting more insurance, typically an umbrella policy to cover your entire portfolio, instead of OR in addition to an LLC.Of course, discuss all this with an attorney!

Or is there a reasonable population of year round renters. 

I think the best bet is to always use two reasons for rejecting an applicant (bad credit and a mediocre rental reference) unless truly egregious (i.e. a murder felony).

It will need some work and the price is not bad for the lot size, estimated at $375k.

Yeah, if you don't have bad credit or a horrible debt load, no reason not to have you on it in this scenario. 

Properties there are being snapped up at near ARV prices.  

They will back off the sales price any "imputed" interest to determine a tax basis.3.