Even if you have a property manager the  injured party is going to claim you knew about the situation or should have known, so you’re equally responsible. 

Any advice on what to do in a situation like this would be greatly appreciated!!

And it most likely will.There are some loan products available for low downpayment if you are willing to do a live and flip situation. 

They can ensure it’s done properly and provide advice on your specific situation.

Another investor in our mortgage fund wanted to visit every borrower and discuss their personal financial situation with them.  

@Pete Tarinthere could be tax benefits - you might be eligible for passive losses, but it would be specific to your situation. 

There are some other dynamics that also will likely play a factor in making the situation great for investors...such as runup in home prices and interest rates probably created a permanent renter class of society. 

I have consulted with a few attorneys over the past couple years regarding this and have determined that for my own personal situation, umbrella insurance provides sufficient risk mitigation for my situation at this time.

As an accredited investor you have access to hundreds of new potential syndications every month (and crowdfunding deals which are the same thing except are allowed to market on the Internet).You may want to start off on a site like CrowdStreet or FinResi , where you can view the variety ( different types of asset classes, strategies, stances) and start to come up with your own method for looking at deals (which matches your unique, personal  risk tolerance, financial situation and financial goals).Thanks Ian.

Your property listing can also be a great way to lay out qualifying criteria (i.e credit score minimum, and require a co-signer if lower).After conducting due diligence into a particular tenants situation, and you decided to proceed with an application approval, you could require a higher security deposit.