I was told by a local experienced investor that insurance companies will always go cheap with paying out to contractors in the event a property needs to be rebuilt. 

How much do they want you to to pay, to pay off one of the mortgages (or both of their existing mortgages)? 

If the new owner pays on the loan its not "equity skimming" from what I understand of it.

However, aside from that, I couldn’t find much information about them, and the only online presence seems to be the wife’s LinkedIn profile (though I’ve never met her in person and am just going off her profile picture on Zillow).After submitting the application through Zillow, we attached our income (two months of pay stubs for each of us from our current jobs), work references, credit and criminal background, rental history, and the contact info for our current landlord (who just so happens to be my fiancé’s father).

That means paying all cash isn’t an option unless you plan to bring another $600k to the table. . 

Now, I'm imaging a scenario when every one of these tenants move out that I'll be paying their entire security deposit + interest even if there are damages beyond normal wear and tear. 

To be clear, you are not paying off the 80K mortgage.

But now 50% are not paying.

because I was paying my bird-dogs vs having them pay me and just promise how someday, maybe just maybe they will bring the grand-slam of a deal and then I will be paying them oh-so much $$$$$ Seriously, from those buying into this I gotta understand how your mind works, no insult meant, I am genuinely intrigued and baffled because if it's a good deal you can go to any number of investors and get $, not a one will charge you for the opportunity to present them deal. 

. - AOA Debt Reporting Service: letter sent w 120 days to pay (with credit bureau reporting) after which it rolls over contingency plan with collection agency getting 38%.I know I would not want the task for what they charge.