I am definitely looking at the DST option as well.

Renter's insurance protects tenants' property and landlords' property.

I am still doing the same work but set up the LT and LLC to provide improved asset protection but obviously want to structure my business so that I have both asset protection while maximizing tax benefits that i can.To be fair to my CPA he didn’t say this would be an issue, he is in the process of doing research to verify the impact of the organizational structure changes and I was looking to educate myself in parallel obviously hoping my research and my CPA’s landed in the same place.

Depends on the neighborhood as well.

That is the law that regulates the type of activity you are describing.Telephone Consumer Protection Act 47 U.S.C. § 227SEC. 227. [47 U.S.C. 227] RESTRICTIONS ON THE USE OF TELEPHONE EQUIPMENThttps://www.fcc.gov/sites/default/files/tcpa-rules.pdf 

Also if they use house hacking they would have the other tenant that's paying rent would also be technically paying half of the mortgage as well.

With such strong credit, the interest rate should be well below the 8.00% quoted.

We were happy because we bought around 40 houses with only about 5% down out of our pocket in the end.They didn't cashflow very well for a few years because we had to get higher leverage to get all of their money back but rents are going up and they're doing better now plus we have a ton of equity that we can repurpose if we so choose.

They have enough going on.We would probably have the steps in place to protect the owner just in case things go sideways. 

If you think you can rent this out as a short term rental, then that is another story and I think you're 10k could be well spent to increase cash flow.