It may require different insurance too..

Many contracts allow for the buyer to do some due diligence that could include things like inspections, zoning, whether the property is insurable, etc.

Lenders usually determine whether properties are lendable based on the debt service coverage ratio. 

@David Cherkowsky, the lender will take the full rental income reported on the tax return, for that property, subtract it from the total expenses, add back depreciation, property taxes, mortgage interest, home insurance, HOA(if applicable), sometimes repair expenses(must be documented), divide it by the total amount of months the property was in service for that year (THIS NUMBER IS ON YOUR TAX RETURNS, SO MAKE SURE YOUR ACCOUNTANT DOES NOT PUT 12 MONTHS), and subtracts it against your total monthly mortgage payment.

Long term $ can range from 6's-10% range depending on all types of factors - LTV, location, unit count, debt coverage, borrower strength, full doc or lite doc programs, etc..

If you do the deal, ensure you have your property taxes set aside, because with seller financing there is not an impound process to handle the taxes and insurance. 

The podcast also talked about insurance claim re-housing where families lose their homes to a tragedy and get replaced through their insurance.

Should the buyer or seller pay for title insurance?

I can go out to my "surplus" carriers and get coverage. 

I think @Brian G. and @Jaycee Greene hit it on the head: an event occurring/debt resetting.When the debt forcefully resets on some of these assets, valuations drop if the submarket cap rate has expanded and/or if the operator can not show a good t-3, t-6 etc due to economic vacancy and rising opex (insurance, r&m etc).If the operator can't inject equity to cover the difference, then trouble arises.