If he maintains that he paid, then we will need to ask for documentation (and I suppose it is possible the seller is being dishonest).   

Therefore the demand for student housing has increased while current owners await insurance settlements for their damaged properties.

Borrower failing to pay taxes and insurance?

find out from insurance company their maximum before you swap it to vacant housing insurance and probably do it even if they say 60-90 days. 

Is there a way to insure that the original owner will not pocket the monthly payment I make leading to foreclosure of the property?

As others have mentioned, it's super easy to go on the CO Secretary of State website to actually create the LLC, but the Operating Agreement and the title transfer documents should be drafted by an attorney. 

see section 310.https://codes.iccsafe.org/public/document/IRC2015/chapter-3-building-planningFree codes:https://codes.iccsafe.org/index.html/

They were talking about self insurance and about how you can basically setup your own insurance company.

Except lease contract, statement or evidence of security deposit, move-in check-in list, what other documents should we get from the seller? 

I’m unable to reach the tenant via phone or email and I want to access the property to get a certificate of occupancy and to document the condition of the property.Can I just go there with the police and if no one answers the door bust it open?