Here are some other things that could go wrong which may cause failures:Unknown necessary repairs (i.e. sewer lines, roof, etc)Not having cash reserves to cover vacancies / major repairsUptick of crime / vandalism in neighborhoodVandalism of propertyInfestations (pests, other)Bad tenants / No tenants / tenant family issue impacting stay (i.e. death, divorce)Rezoning of school districts / Loss of accreditation of school district Insufficient Property Management (not addressing tenants concerns, no notification of repairs timely - causing further damage, etc)Not following market pricing on rental / raising rent to frequently or too much at onceLegal issues (i.e. tenants sue for injuries on property, taxation, etc) I think you get the idea.

To add salt to injury, they made a killing orchestrating the sale of the non-performing loan they did a such a poor job underwriting in the first place.

They are like injury attorneys and get paid a percentage of your claim so they fight for max amount. 

My property management companies in TX require 300k bodily injury and property damage.

It doesn't include debilitating attacks that leave people with long term injuries.

There are exceptions, of course (one extremely notable one), on both sides - however the real talent that builds value is by the numbers, somewhere else.I've had some anecdotal experience with very dysfunctional policing, and societal expectations that are not inclusive, and do not value a policy framework that fixes the below:Rampant non sustainable 'pockets' of extreme generational poverty, irreversible income and wealth disparities. 

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.

Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others.liability insuranceInsurance coverage that offers protection against claims alleging that a property owner's negligence or inappropriate action resulted in bodily injury or property damage to another party.

So he's telling me that he's got it arranged with a buddy of his to do the move with him. 2) He has a brain injury & goes from being super nice to outright nasty, freaking out on me (when I try to encourage him to get on with his move).

Personal Liability: For claims due to Bodily Injury or Property Damage that you becomeLiable for and which is covered under the policy.