Rate of return and safety of the investment are what will matter to him.

It might be worth paying another 1% to a bank for the safety of knowing your owner financiers cannot be foreclosed on. 

What are effective ways to word, non-hypothetical policies to ensure the safety of your residents and property?

Get some knee pads and safety goggles, of course, to protect against the infrequent errant piece of tile flying up.  

I only needed the 203K monies to cover required "health & safety" issues.

Umbrella Insurance is cheap compared to a series LLC, for the most safety have both.Plano/Allen/Frisco probably do not have too many of the 100 to 200K properties that make great returns as rentals.  

If it's true I can cash flow there WITH a property manager in place, and it's at least a B neighborhood in terms of safety and tenant quality, then I will run, not walk, to invest there (I won't live there most likely).

For a start, this usually means replacing a low toilet with one that is at chair height and adding safety grab bars to the bathroom/shower.

It's worked out great as I've done a few large apt deals and my experiences and earning potential is far greater than I ever thought was possible this early on.I say this because its natural to want the safety net from leaving one good paying job and wanting to jump back into someone else paying you for another job.  

So they are compelled to take action.There are people you can talk to in the various departments (planning, building and safety, fire and more).