I am leaning towards skim coating the walls, priming, and painting to 'encapsulate' any possible danger.Your thoughts and feedback would be much appreciated.thank you!

One of the closets "has exposed asbestos material on ductwork that should be professionally encapsulated or removed.""

Mike's second paragraph perfectly encapsulates my thoughts on the state of RE syndications todays.

A foundation/water proofing guy told me the best solution is encapsulation with sump pump which is going to cost nearly 20k.

Lead paint is completely safe if it's encapsulated under another layer of paint.

Non-QM loans encapsulate a wide variety of mortgages, including: DSCR (debt service coverage ratio), bank statement loans, asset utilization loans, etc. 

@Guillaume LechatYou can ask the insurance company to help with mitigation: most have their vendor network.If it had heavy smoke damage, you will be hitting the entire place down to the studs.Likely you can salvage some of the contents and get them cleaned ( insurance company can assist with vendors who are vetted)The studs will need to be encapsulated with an oil based primer.Run an Ozone machine to kill any remaining odors.Commence build back. ( insurance can assist and or you find your own contractor to assist)

Painting over it with non-lead based paint encapsulates the problem and basically makes it a non-issue.

Sometimes people so crawlspace encapsulations to avoid moisture but there should be paperwork and a warranty to prove it and you can still access it in some capacity!

@Bobby Larsen, I've read this entire thread and would like to take a stab at encapsulating it as I actually understand, or at least think I do, everyone's responses..