Rent covers a lot of different expenses that new LL's don't see going in, then try to recoup from tenants. 

There are some HOA's out there that will only allow a certain percentage of units to be rented out and may have some other restrictions in the CC&R's.As for your question, the "best" way of doing something in real estate is typically subjective, but having a HELOC payment, in addition to the mortgage, taxes, insurance, and HOA dues, just increases the chances of having a less profitable property or one that may not cash flow at all.

Can you perform a Subject to owner financing or "Subject to" on a USDA financed house?

I actually asked how it was handled due to the subjectivity of the content.

Is the home owners insurance covering the cost?  

After buying the property and viewing it I quickly realized why noone had rented either of the vacant units: both units had what looked to be mouse crap on the floor and the other unit had a broken window (not cracked - a literal hole in the glass) and there was a hole punched in the drywall (covered using cardboard). 

*HOAs usually cover lawn care, sprinklers, lawn watering, siding and exterior care, insurance, and more                *This covers most of the exterior line items that you would otherwise have to address in a single family home.

What we paid for a property is completely irrelevant after the closing day....what matters is the current equity and the forecasted future returns relative to alternatives.Many investors use forecasted IRR and they frequently subject their EXISTING properties to their ACQUISITION criteria. 

Will assigning my LLC as landlord limit what these policies will cover me for? 

However, you would need to make sure that the rental rate you could demand would cover the new loan payment plus other expenses while still cash flowing.