But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't?

Those people just put their cabin on whichever local PM gave them the best sales pitch, and most of them charge 40% (although now they are doing "introductory" lower rates for the first year if you sign a 2 year contract.

Is there anything else I can do as a Wholesaler to minimize the possibility of being sued?

By thoroughly vetting prospective tenants, you can minimize the likelihood of encountering non-payment issues and eviction down the line.

Cashflow may be minimal but rates will go down eventually, and at least in Coastal FL, values will go up (even higher). 

This wasn't done through pitching me Upside opportunities, but instead through sharing his Detroit investing experiences and goals.

unless you understand the actual DSCR, lender finance , there is no such thing as Great GP.Great GP that works in 2018 ultimately many failed in 2023 There's difference between actual marketing pitch, and actual apartment condition in practice. 

Now your tenants are happy, and you have minimized the time you would have spent speaking to your tenants about the delay or fighting a warranty company.

The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money.

And yes, the payments are usually handled via a loan servicing company for a minimal fee to the seller.