The place to start is by calling your insurance company and asking them what your policy would cost.  

As far as protection, an umbrella policy can be sufficient for protection, but you'd want to talk this over with an insurance agent and probably a lawyer as well as I am neither of these things.

Insurance, tax, water, electric, garbage.$7,000 maintenance last year $5,000 of it from a roof repair.I think for this complex I will need to put down 35%, which I have saved up, but it's pretty much everything I have saved up.If I put in a 5% vacancy, and $3000 annual maintenance.

& additionally with every transaction.I personally think this idea will work, as many individuals invested into the bitcoin scheme just recently, and now facing severe drops, the smart ones will move to take a loss in order to convert into tangible & stable assets.Share your thoughts & ideas on this.

The lender wants me to insure the house for Replacement cost which is 361K...

The bank will pay for the closing, but I am unsure who I use to get Title Insurance on the property. 

I have been told by several people in Atlantic city (real estate agent, home owners other investors) that in NJ at closing you only have to pay a quarter of your taxes, home owners insurance and flood insurance upfront.

Ensure you include all of the expense calculations when number crunching (property management, vacancies, maintenance, capital expenditures, property taxes, and insurance).

If they can afford the utilities and food, Take out an insurance policy on both of them.

You are basically describing turn key providers.They buy distressed properties, rehab them, get them stable with tenants and then sell to investors.