You should have LLC in the state where you hold your property for liability protection.

LTR insurance will not cover STR liability and vice-verse.

As in they are requiring your income information and qualifying you off your personal liabilities?

I think $360-$400 is a typo, since taxes alone are $1,083.33.I don't think anyone here is going to be able to contribute much of value without on-the-ground knowledge of your neighborhood and it's trajectory; the likelihood that your big expenses (like taxes) might increase rapidly in the future; what it's going to cost to repair the building;  whether there is opportunity to quickly increase rents and/or decrease expenses; and whether the train tracks are an asset (commuter station) or a liability (constant noise and vibrations).Based on what you have shared, $450/mo cash flow on $100k invested (25% of $350k plus modest repairs) is 5.4%. 

Here is the article directly from the IRS website: https://www.irs.gov/newsroom/irs-revises-ein-application-process-seeks-to-enhance-securityI am now concerned that by requiring an individual to be the "responsible party", the liability is now on the individual rather than the entity acting as the general partner. 

Because of the WAY I invest, I get all of the benefits, tons of tax write offs, and therefore have limited tax liability.

For a first house hack we will want everything on the up and up, since we can't afford extra liabilities from potential tenants that might find out and come after us for it.

I know this topic is all over BP, but I'm a little unclear on one of the main downsides people point to when it comes to being licensed, which is liability and disclosure.

What is the liability? 

You are paying them good money they should be a benefit not a liability.