Kyler, call your a couple of insurance companies and get a formal quote so you can take this back to the seller.  

The reverse mortgage company wants buyout and I dont have over 200k to pay out.

I utilized those funds to purchase 18 rental units.

I am pissed at the company and in search for a decent management company at this point. 

-Start at a title company- they will help you structure liens and deeds so that your interest is protected properly.

Apparently they take preferred interest in your company or have you sign a UCC cash flow agreement.

Do they use a servicing company to make the payments directly to the , or do they make payments directly to the seller and hope they pass them on to the lender?

In our experience, the #1 mistake landlords make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

Since we will be investing remotely, we plan to work with a property management company to oversee day-to-day operations.Does this sound like a solid strategy for a first investment property?

I've heard there's a good chance the mortgage company won't care as long as the payments continue to be made on time but I still want to protect myself just in case.