I suspect the person who originally turned it into a fiveplex only applied for permits to make a fourplex and then did the 5th unit fly by night (perhaps at a later date) in order so the property would still be considered residential and allow for better financing possibilities.

I have umbrella insurance under my personal names currently so I'm wondering if the umbrella insurance would cover me in the event of some liabilityQuestions:- Am I better off keeping the rentals in my name since I have umbrella insurance?

Ideally your alter ego can do it, but for some people it is better to ask someone who does not care one way or another.

Now I'm on the Panda Planner and actually like it better. 

Is this book worth my time or am I better off going another direction?

And also I inherited the tenant and havent signed lease with them been advised to better honor the same terms of the seller until their contract finish.

Any of these will leave you in a much better position for success, and provide a greater income while you learn.  

I guess that's part of my question, if you could have the security deposit cover that and people's experiences so I could better prepare myself. 

However, if you're a W2 high income earner or business owner, I can't imagine it makes any sense to flip houses, mail mass post cards, wholesale, or build lead gen websites with the value of your time being better spent other places (such as learning about real estate and increasing your income through proven means), such as at your 9-5pm or growing your business, and your real estate is a long term process and you don't need "home run" deals to qualify or make it work.

Would this be better to try and go through a local bank or is there good options for private money or other banks that specialize in this?