You should aim for the longest Amortization you can get, CU may give 25-30 year?

In my opinion disclosure is always the best policy in both scenarios. 

They would not put up my listing because it violates their policy on financing.

The landlord should be named on the tenant's insurance policy for additional protection and to assist with tracking compliance.

I use strict / flexible cancellation policy.

Assuming you want to aim for syndication, you sort of need to learn how to develop a pro forma that ties the return to an IRR/XIRR. 

Your primary strategy should be to have the Contractor and all Subcontractors add you to their insurance policy as Additional Insured. 

How would an umbrella policy protect against a security deposit related claim?

Beyond the bedrock issue, soil conditions can be costly if the property has problematic soils such as too much silt, deep topsoil, or extensive wetlands.You'll also want to know what ordinances are going to affect your budget - things like tap fees, tree ordinances, storm water retention policies, etc.Bottom line is that you have to investigate ordinances, off-site conditions, and on-site conditions before you can even begin to budget your development.

The PM should be an expert on state law, and they should have policies and procedures in place to handle these situations.