I understand where you're coming from, it's a mindset shift and I think many (if not most) people here will tell you that the shift occurred after reading "Rich Dad, Poor Dad"... so if you haven't read that, you may want to.  

We provide our investors with monthly financials and an email explaining the financials and what occurred during the month.

So the point of this is that what often occurs is that in the year that you close on your purchase you start out at the seller's old property tax rate.  

Yes it happens but it’s not very commonTitle insurance generally operates retrospectively, that is, it indemnifies against covered losses caused by things that occurred before the insured took title, not after.

You can spell out all of the different scenarios that may occur in the operating agreement including splits and ownership.

When I expressed this to him, he ensured me that if this were to occur, his insurance would cover it in a Summary Claim.

More than four months rent were lost between missed rent payments and legal fees to evict the tenant.The next tenant was much better, but had frequent complaints regarding legitimate problems: -bathroom sink hot water knob that didn't work-rat urine smell coming from the vents-water leakage from the toilet(I understand that problems occur, particularly with properties of this age, but it was surprising/disappointing considering I paid Ohio Cashflow $64.9k for a property they bought for almost half the price, then, even after having done improvements, still required frequent repairs.)3.

Their lender will likely call the note once they realize what's occurring. 

This situation occurred almost four years ago.

Those cap ex events may not occur in year 1,2, or 3 but they will occur and when they hit, how will they be handled?