Now you also have title chain, insurance and DOS risk on top of business risk.

Apart from the mortgage, I would need to pay the homeowners insurance ($2,000) and homeowner's association fee ($500). 

Assuming you have basic screening standards the vast majority of S8 would never pass.

My insurance went up about 3 times when I switched from standard property insurance to a STR policy ($1,200 a year to $3,400 a year).

Do you have E and O insurance to protect the agent?

Maybe here:https://standard-agreement-for-real-estate-sale.pd...

When they do this, I set aside the appropriate amount for maintenance, capex and taxes and insurance.

If it were mine, I would pocket any insurance money and dump the property.

I don't put it past any doubt to have landlord be that stupid to do what you claim, but the odds are against it.As for not accepting your rent payments....I can see that......seems pretty standard once the landlord has decided that its time for you to leave and has moved forward with eviction.

It's common for commercial properties to make the tenant responsible for taxes, insurance on the building, maintenance on the interior, etc.Just keep in mind additional requirements may be enough to scare them off.