Next time the seller is a business entity, I might ask them to escrow an amount sufficient to cover any changes in the seller's share of property tax or have the owner sign personally for it.I hope this saves someone else from the same mistake.

I probably didn't expand my search enough geographically (limited myself to properties within a 30-minute commute of the Irvine Business Complex where I worked at the time), but I couldn't find anything that would meet the FHA self-sufficiency rule.Fast forward to 2015, and I eventually found a 4-unit to house hack using FHA, all the way up in Santa Clarita. 

If we invest strictly for cash flow in the beginning, it will take a long time to build up enough capital such that the cash flow is sufficient to replace our active income.My own thinking was like yours at one time, but has evolved somewhat with the benefit of hindsight as well as some introspection about what kind of investor I am. 

I said "so much for your so called wired city"After some back and forth negotiation and maneuvering, the city attorney produced a demand that was sufficient enough for my escrow officer to calculate her estimated closing statement. 

You do not need a LLC all you need is sufficient insurance.

Those closing costs are sufficiently high, across the board, that you're obviously including things that have nothing to do with the lender selected. 

Also if the insurance is deducted in escrow by naming yourself as an additional insured on the policy will this be sufficient protection?

Numbers matter the most, but 1) look at your exit strategy if you need to do so down the road. 2) Get your rehab costs written down in concrete if subbing out to contractor or your numbers are worthless. 3) Include sufficient vacancy percentage based upon the immediate, surrounding neighborhood 1mile or less, when doing your numbers.Plus, as a mixed use, can you get financing or can a new buyer if you sell?

Will a title co. be sufficient or should I insist on a reputable RE attorney?

You can do a basic Supply Index study to determine if the location has sufficient demand, and whether it is undersupplied.