From what I’ve read recently in the Wall Street Journal, some lenders have been more flexible with assumptions.

It also appears that you are making quite a few assumptions as to how I operate my business. 

I think if you had more reserves and had less of a primary mortgage note, you'd feel a lot better off but I'm making an assumption.

_____________________________________________________________Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Due to assumption they will be more a draw and negative than a resource. 

I think you're missing the most important piece of investing - and thats the assumption that you need to buy right.

My assumption was that if, let's say, the structure burnt down, the property's insurance would then pay me out FIRST as the lender and NOT issue a check in both the Lender's and Property Owner's name.

You are making a lot of assumptions on accessibility and ease of install.

This article makes some very strange assumptions.

Beyond that, it would be defending all your assumptions with market data.