I’m considering even taking the risk of investing out of state in markets with lower property taxes and insurance costs than Florida to increase cash flow.

IE securing them paying tax's insurance etc etc. 

I want to escrow taxes insurance and sewer.

The insurance costs for small multifamily in Florida, especially with older builds, is rising and rising.

You might be referring to income / expenses that are reflected by cash.Cash you receive from rentsExpenses that you pay out such as insurance, interest, taxes, etc.You may not have included depreciation expense which would bring your taxable income down further.It may be possible that the negative taxable income would bring your taxable income down.

Despite the fact that my decks were up to code when I bought them I have had my insurance company do inspections and make me install lag bolts on many things that are in my opinion fine.

For instance, depending on your location insurance costs could be much much higher than indicated in the book, construction costs are a lot higher, etc. 

Let's say they need to foreclose and the borrower picks up the Yurt and moves it - now the entire loan they underwrote is thrown out, along with title insurance, and the lien on that property.- Value: A SFR, or 2-4 unit (what it would be in this case) are residential assets and thus are valued off the "sales comparision approach" rather than the income approach.

what is damage protection insurance? 

I've only ever purchased homes as primaries, one being rented out currently to an insurance company and the other is my current primary.