As an unlicensed/ uninsured arbitrager, you will not have the same level of legal protection if something happens at the property and you end up being named in a lawsuit from either the owner, a renter or their family member (like in the case of a serious injury or death at the property).

The guy is mad, because he could not have it his way and get the whole house and now adding insult to injury he is being fired.

Then - to add insult to injury, now that you have a shortage in your escrow account, you now have to make-up the funds that your lender will front for you to pay the taxes for the CURRENT tax assessment.  

@Evan Loader  My assessment is that this will cause a lot of needless time, expense, and pain for no discernible benefit whatever.See "Prohibition of IRA Investments: Don't Cause Injuries by Fixing What's Not Broken" on Medium.com

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

I saw previous posts recommending personal injury liability.

Hi All,I own properties in Bay Area at CA.I recently got a letter from a lawyer claiming that I was negligent with maintaining the sidewalk, which resulted in his client trip and fall over it.There are no mention of what type of injury and damage.The letter show a half a foot section that is more than 1 inch in elevation.

I asked for proof of her injury and they said she is not permitted to share that with me. 

That's age discrimination and is a can of worms best not opened.However, whether you inspect or not, you have liability if lead paint causes injury.  

There are obviously some big potential issues with injuries and such so I wouldn't say yes without doing some research first.