There are creative ways to make those reserves work for you, but they act as an insurance policy for major expenses.

I personally have each of my properties setup in their own LLCs (no biz license required where I am at) and then have a personal liability policy to cover myself as an individual in case someone got through the LLC wall.

That way any water heater, furnace/boiler, etc are covered by that insurance policy. 

From my research so far and conversations with a couple property managers it sounds like there is more upside on the STR/MTR side of things however it doesn't seem like Denver's government is very friendly to the STR/MTR option. 

The Excess Liability only follows the form of the underlying policies listedYou may have difficulty getting the umbrella because it normally covers over the Auto and Homeowners Liability as well. 

Our approach for implementation is to break all repairs into 4 categories by priority:1) Health & Safety - most important as could result in tenant lawsuit2) Property Preservation & Government Requirements - don't ignore a roof leak that costs hundreds to fix now, but will costs thousands in the future.

Even if you get a title policy you may have a problem which is not covered. 

Your doing work is governed by your contract with the seller, which obligates you to put his interest above your own.The seller's broker will never have to do the buyer's work.

You are talking about government and using the word " Normal"  ?   

BTW, in regards to Experience 2, have you considered filing a complaint with the state board that governs the title company?