If they can't insure it try contacting several Independent Agents in your state to see if they can cover it under a Homeowners or some combination of policies. 

Also, if you combine the strategy of adding value with this house hack, you can then gain equity faster.

I would NOT combine water/sewer with trash.

Is there any difference in loan options or insurance for buying something with a commercial unit before I combine the 1st floor?  

Hello Stephen,That's great that you finally want to jump into RE. 1) I would use FHA and VA loans available to you and take advantage of that. 2) Househacking will be great to start and to use as a combination of a primary residence plus investment.3) I would not worry about forming an LLC yet. usually, that is when having +5 properties, However, it is your decision.Good luck,Claudio Salvatorelli 

I think time of year combined with the spike in Corona and being shared space is to blame here.

All of these are combined and depending on the ranking maintenance or repairs are selected to keep more essential building/system in working conditions. 

All one lump sum combined in the rent amount.3.

It is a combination of a good QI and a good agent, typically.

E g $1,000 in rent combined = $100k.