I don’t yet have an insurance policy but after reading and watching a lot of content on the subject I just need clarification because it seems like having your money grow in multiple places is the way to go!

You can either buy subject 2 the existing loan or you can find a good deal and get a loan on it.

This means that the rental income and expenses is reported on your Form 1040, Schedule E, rather then an partnership return (form 1065), C-corporation return (Form 1120), S-corporation return (Form 1120-S), fiduciary return (Form 1041).You can elect to be treated as a C-corporation or an S-corporation, however, you are then subject to different income tax consequences, and an additional tax filing for the rental income and expenses stated above.

Study the subject and how it benefits the Seller.

The use conforms to the subject neighborhood and to the market.

Repairs are always going to be a matter of subjectivity as to whether they were done correctly or not. 

Then look for markets within those states that have affordable home prices with good rent, have growing populations, growing jobs and modern/diverse economies and industries.

If the seller does still have a mortgage, perhaps you could do "subject to" financing where you can assume the mortgage and take over making the payments.

Also, places like that are subject to special assessments like any condo.

The systems someone made for themselves and now want to sell to other people tend to work much better than the systems that people built using you and others as the test subjects.