Good points.I'd add square, level, plumb - license, insurance, bond - using permits to follow codepointing out problems the owner doesn't realize they have that are serious. 

Insurance is definitely an issue there, and will continue to be.

Many stockbrokers and insurance salesmen are not fiduciaries. 

Insurance and LicensesThe Subcontractor agrees to maintain:General liability insurance of at least $[Insert Amount].Worker’s compensation insurance (if applicable).All necessary licenses and permits required by law.6.

For us, we have insurance on it and found it easier to keep in the trust vs. llc and have to deal with state filings etc. 

Assuming property taxes + insurance added don't go above $1,100 total, you could maybe make this work. 

Credit is a factor as bad credit may limit options, or may have the lender require you to put 10 or 20 years of taxes and insurance into escrow. 

Address potential risks by explaining strategies like maintaining emergency reserves, purchasing proper insurance, and conducting thorough due diligence.

How do I go about finding those who'd rather just collect the insurance money then sell it off at a discount?  

Our entire network of agents, title companies, insurance, conventional lenders, private lenders, and many others come together to make this an enjoyable experience.