I would be against it as I feel the whole purpose of wholesaling is to isolate the seller from any costs on their end and you as a wholesaler are there to assist them get out of the property and with some assurance that you will be able to close.

Without looking for a pile-on, it sounds like there's been some recent less favorable opinions regarding National Real Estate Insurance Group, don't know if that was an isolated incident or two, or something bigger. 

I have a great mixed used location that is isolated by 2 train tracks on either side, has amazing water views and could support both affordable and transitional housing.

I would like to think that I am in a position to take advantage of such a circumstance but there is a chance that the decline is not isolated to RE and that many/all of my investments take a beating significantly reducing my safety net.The people who do the worse in RE are those that are forced to sell at the worse time. 

Am I SOL if I don't have the cash? 

Hoping for some feedback and suggestions on improving this or what other people have done for structuring the deals.(1) Set up a parent LLC which is owned 50-50 with my money partner. (2) set up a subsidiary LLC for each property purchased, which is 100% owned by the parent LLC. (3) purchase properties personally with myself and money partner on title and note.(4) quitclaim deed the property to the subsidiary LLCThis structure was recommended by an attorney to isolate each property for liability reasons and to keep books, etc separate.

Depending if there are individual shut-offs to the apartments he/she may be able to isolate a water leak.

The deposits you collect need to be in an isolated account with only that activity in it. 

Then I ran separate CSST lines with individual shutoffs @ the manifold for leak test & isolation to the dryer, gas stove, boiler & HW tank.

In short, this isn't simply an isolated BH issue.