Do you need the additional funds from the proceeds of the property to purchase your next home?

Also, unlike 1031, he doesn’t have to reinvest the entire sale proceeds. 

If the liens exceed the purchase price and a mortgage is involved, your hope is to do a shortsale.If there are no other loans currently on a property, the old 2nd mortgage becomes the 1st mortgage.When explaining this to the seller, agree on your purchase price and let him know that the mortgage being paid off will come out of his proceeds.

I checked the tax rates, insurance it seems to be reasonable.

They're more of a wall street structure and no deed or title insurance is given. 

For things like property taxes and insurance I took it from either the county website or a mortgage calculator.It is also worth noting that this would be for a commercial loan (e.g. 5-year balloon loan), but the amortization would likely be 30 years. 

- Any tips/suggestions on what type of insurance to buy for a Condo and the level of insurance needed?

Make sure you run your numbers right including ongoing repairs, insurance etc. 

The down payment/overall price, insurance, taxes, etc seem much lower and the ROI looks to be the same, if not higher on the SFH.

Do you prefer getting an LLC for your property or to use an Umbrella insurance?