What do we need to do to ensure we are not liable for damage that a buyer might uncover later, that we are currently not aware of?

Local is always a great place to start with the assumption you know the market, the challenges, advantages which can make it easier to uncover the best deal. 

That way they blend the portfolio overall return higher over time but still stay passive.

All in the chance that you can uncover a deal to make some money.

The exterior cladding/panels are a proprietary blend of bio ceramic/ mag ox.

Well, after we closed and brought our rehab team in, they discovered a small door in the back of the property (covered with siding, so it blends in). 

Several thousand dollars in uncovered repairs is a cost of doing business that isn't going to have much of an affect in the long run (especially if you're saving it in lower premium for the higher deductible); whereas several HUNDRED thousand dollars in uncovered liability judgement is going to hurt, really bad.2) Once you grow to a certain level, you become more of a target for lawsuits.

First, I would like to tell you a little bit about our goals, our  situations, and how we blend them to make the team that we currently have.Let me start by giving you the make-up of our team so far.

First, I would like to tell you a little bit about our goals, our situations, and how we blend them to make the team that we currently have.Let me start by giving you the make-up of our team so far.

We have a SFH that has been having a number of minor plumbing problems, and now we have uncovered that one of the major drain lines (cast iron) has deteriorated and will need to be repaired.