Am I correct in assuming that another requirement is to have a certain amount of cash reserves saved up to cover any unexpected expenses?

Rentometer covers a large area and I am guessing this property is sub-par for the area.  

You got to have all your social media covered. 

But high level:1) If the units rental income doesn't cover mortgage its not going into my buy/hold portfolio , I have a separate "appreciation" portfolio for that on (think San Francisco where CAP rates are 3-4 , but if you can wait out or turn low rent controlled tenants you can improve the building profile.) 2) I am currently looking for places in B- to A- areas.

You might have noticed that people that have been successful with rental units in  houses have to own about 20 or 30 of them just to cover their monthly bills, then they might get some of the profit when they own 30 or 40 all at different addresses.With apartment complexes you might just have one address where you have many units. 

Curious, under what basis is the insurance co. trying to put this on you.....the cause of the suit is not a covered action?

When the garbage disposal crunches through twice as much stuff, it dies faster.The floor coverings wears down twice as fast.

If the property needs tons of work or tenants are sporadic in payments you could actually be paying out money monthly and be saddled with debt.The rate and payment given are great. 12% down is just enough to maybe cover foreclosure costs if you do not pay the note.

Eliminate any areas with heavy snowfall, (burst pipes and roof damage).3. 

You will need to do a lot of networking to get "the same level of support" as a realtor gets.Regardless of which path you choose to pursue, you will spend money out of pocket (if you don't have a part time job) to cover the costs of doing business.