I understand that the property will still be covered by my personal liabilty insurance, but I would like to move the other business aspects into a separate business identity.

You will still have to pay 10% of the 125,000 to adhere to their 90% LTC policy, so that means $12,500 for down payment. 

Three, not all E&O policies are the same, the policy your broker carries may have restrictions as well.

If I pursued the second strategy, wouldn't I have to get 2 insurance policies, one while I personally own the property, and another when I change title to my LLC.

Make sure you take advantage of that VA loan. 100% financing with no monthly mortgage insurance!

Waiting to hear back on utility costs..Here are my calculations:Purchase Price=300,0000FHA: 3.5% Down=10,500Payment= $1470 (not including insurance or taxes)Taxes=$2k/12=167Insurance?

My monthly numbers are pretty good after Loan Pmt, Taxes and Insurance, I'm clearing Approx $575-$600 on Each.

Not to mention the admin cost/burden of setting up/running the LLC(s).Unless you have high net worth or ton of assets what you're seeking can probably be solved with umbrella policy which would be a LOT LOT LOT easier.

This money goes back to paying off their following year’s property tax, home insurance, and some of the mortgage." 

East of 157 you are up on the bluffs and no flood insurance is required.Speak Spanish?