When you manage a lot of properties and a lot of people its a huge risk.

All Risks has been the best one I've worked with but REI Guard also works.

Focus on the aspects that will help you determine if they are likely to be great tenants or more risk.

Probably the number one risk you face is the real-estate market crashing.

Title companies do not recognize quit claims in Texas except for internal transfers such as a divorce situationDeeding the property back to the owner has it risks. 

It obviously depends on my comfort level and risk tolerance.I'm pretty comfortable with the coverage of the current property policies, but I've never had any claims against me or my properties, so I don't know if $1,000,000 is plenty of coverage or not.

Adding to the risk they would need to hold things together for 2 years.The only reason I am reluctant to pass up the deal is that it is a 14% first mortgage with payments of $1650/ month.

The problem with having a co-signer is that it does not eliminate the risk of late payments or having to evict.

Most condo communities have a master policy (hazard and flood), however, if the property isn't insured fully or the Deductible is really high or God forbid the association in Florida decided to forgo flood coverage due to a LOMA (being mapped out of the high-risk flood zone).

Full search, perhaps additional risk premium.