I have to move, I lose job, he dies, etc.Who pays taxes and insurance?

You don’t necessarily need to be local but there are also misconceptions and rules to follow:https://www.biggerpockets.com/forums/530/topics/1056436-clearing-up-confusion-on-tax-treatment-of-short-term-rentals

The cost is very high interest and origination fees.

They settled because they were going to lose, so why keep paying expensive legal fees?

At least 3-6 months of reserves.Expect to lose probably 2 months of rents when you close, 1 month vacancy, 1 month leasing fee, and to spend 1-2k to make the unit rent ready. 

Jack Bosch and a lot of the land flipper guys who teach it like to have their students buying in the high deserts and remote areas of the Western US  or in FLA like le High Acres etc. this is were cheap land is and land that gets traded constantly at tax sales.. the play for most of them is really simple.buy at tax sale or with direct mail.. for a few grand  re-market them for more and sell on terms and collect monthly payments.. 

They get the use, ownership, tax advantages, maintenance responsibilities, and you get the upside equity if it appreciates.

Taxes are almost always the largest selling expense you'll face and can very quickly kill your investment's efficiency if you don't manage them intentionally. 

So, theoretically, a six-month loan of $100k could net $2k in points and another $6k in interest payments totaling $8k in fees and interest.   

These lines of credit generally have 1-2 year renewal periods and require you to send the bank your tax returns and possibly personal financial statement on an annual basis.In my experience "HELOCs" are associated with your primary residence.