On the other hand, pros include increased cash flow, engineer-based data for the clients CPA, audit protection (with the right firm) and the ability to deflect that recapture fee with a 1031 transaction.

There are still some docs required (ID, bank statements, copies of leases, copy of insurance, etc.), but it's WAY less document intensive than a conventional loan. 

Since you're familar with commerical development, most enginering firms, and attorneys work on both residential and commerical. 

We've never even had a tenant try to sue us over a security deposit dispute.For the last 10+ years, I have occasionally asked for just one example of an investor that was sued, lost, and the judgment exceeded their insurance coverage.

Explore insurance options as well!

Who's name is the lease in, tenant or insurance company?

Any recommendations for Umbrella insurance providers for each partner to cover any liability?

Some people will say, "Take out a quality Insurance Policy and you will be protected."

For a single property, a strong umbrella insurance policy may offer sufficient protection at a lower cost.

As Shawn mentioned above insurance is going to be a HUGE deal in Gainesville as well as HOA's.