Most banks won't lend when someone has an outstanding mortgage so would the owners be prevented from buying another house later because it still shows the zombie mortgage as a debt.Carolin,Based on all the ones I have done, most of the owners have been delinquent in their mortgage payments in excess of four years. 

I think any bad actors should absolutely be shamed and prevented from scamming people (not saying this happened here since we don’t know all sides).

It is true a manager will likely take around 20% but a good manager can save you money through effective preventative maintenance, and can gain revenue through better pricing, marketing on more channels + direct bookings, and more.  

After some research, I've come up with the following:- Blown-in insulation to fill the joists with hard-packed cellulose- Add asphalt panel board layer across the entire ceiling to the existing drywall and fill the cutouts. - Add a second layer of 5/8's drywall to the asphalt board. 

But I do keep boundaries to prevent micro managing.

They are normal to think about, but these kind of questions are going to give you limited beliefs and prevent you from moving forward on a potentially great property.

Let's say someone was bungee jumping off a balcony railing and the railing broke and they fell, injuring themselves.They could sue the property (ownership LLC) because the railing was "not secure".They could sue the manager (management LLC) for not ensuring the railing was secure.They probably will sue both and let the court sort it out.I don't see how 1% ownership of one LLC to another prevents any of the above from happening.

If your lease doesn't explicitly address pest control responsibilities, it’s worth reviewing and considering adding a pest clause in the future to prevent disputes by adding every single pest.

The better question is to figure out how to get insurance and resolving the reason that is preventing it.

IMHO; UD actions are preventable actions caused by tenants failure to vacate the premises.