my property manager asks 10% of total rehab cost, her team will look through the project end to end, without much of my involvement. 

The purpose of the CPL is to expand coverage beyond the commitment/policy and beyond the title insurer itself to others involved in the process (title agents)... your scenario.Quick search -- https://houston.fntic.com/getattachment/6efdc91c-3146-46bc-a...I was saying start the analysis there as that would seem be the simplest route to recovery.

Anything beyond that is going to have destructive consequences for everyone involved.  

This sale usually involves a monthly payment, which is on top of the rent.

It took a while, and there were some fees involved, but it was totally manageable compared to what I would’ve paid with an attorney.

For it to work for both parties you will have to do a little more hand holding and one on  one involvement than you would for a normal rental.  

A smarter approach would involve thorough market research, realistic projections on occupancy rates, and understanding that not every location is still a goldmine for STRs.

Low cap rates because you dont have to do anything, just collect the 4% or 5% like a CD at the bank.10% Properties are going to be more involved.

As a hypothetical, let's say there's a syndication seeking capital....Total capitalization $30M, Equity raise $10M....clearly this falls within the boundaries of where a family office, private equity etc. check writer would become involved if the deal has merit.

Quote from @Yixiong Pan: It's possible, but it's also possible that the tenant will destroy your house and you'll never know.Managing investment property involves more than collecting rent.