If during a deal you act like an agent even though you are wholesaling a seller could misunderstand the relationship and believe you are acting as an agent.

This provides rules and open communication so there are no misunderstandings or family/friends taking advantage.  

My point was more of a general one about how many people misunderstand the role insurance should play in managing their finances and risk exposure, as well as the impression that it is a ‘scam’.

To the degree AVM's aren't reliable, access to MLS data is probably not the issue, though it is a common misunderstanding about AVM's.The real issue with AVM's is that they are based on public records data which doesn't include a lot of important details like floor plan, curb appeal, view, quality of neighbors, etc.

What am I missing here and what concepts am I misunderstanding?

Usually for multifamily apartment buildings there isn't an open house, but maybe I'm misunderstanding what you described?

By no means do I want to disparage or discourage you, but the risk that you invest in a deal you thought was good but isn't, don't run your numbers correctly, under estimate repair & insurance cost, over estimate rent, misunderstand local rental laws, or struggle to find tenants is by far greater than the risk of a natural disaster type event if you're still new to the industry.If I were you I'd start by myself by either house hacking, or buying a few modest single family homes.

The farm is in the process of being sold, and I'm assuming the step up cost basis will save them considerably in taxes (unless I'm misunderstanding the definition of that rule).

Did I misunderstand your figgering?

This will help build trust and avoid misunderstandings.