It would be worth talking to a commercial insurance broker to review and advise your risks and what it would cost to mitigate those risks with a policy.

Is it possible to mitigate that risk with a good tenant screening procedure, and locking in a 1-yr lease agreement to show that as expected income to help with the DTI?

This can be mitigated by a substantial amount of equity in the property, but it’s uncontrollable.

If you qualify as an accredited investor, that opens up a lot more possibilities for you... e.g. partnering with a group that can mitigate your downside risk and diversify your capital vs only having that invested into a few doors.

Make sure to check your HML contract to make sure you can but assuming you can, with a terms sale (C4D) you could reach for a higher sale price, to cover those transactional fee's, and mitigate down any losses or spread them out over a time-frame that works. 

This gives you the maximum in clarity of information, and power position with ability to mitigate any unforseens.

If you have a performing loan at 3% which just tripped the due-on-sale provisions, but can redeploy that capital at 7%, foregoing any significant mitigating factors, it would be a poor business decision to not do it.

There are several ways it's structured to mitigate risk for the buyer and seller but I'm not going down all those rabbit holes right now.

One mitigation to these if that some sellers will give you a one to three month rent guarantee as well as six to twelve month rehab warranty.

Additionally the strategy you've employed has inherent risks associated with it that you seem to ignore because the massive appreciation and rent growth you area has seen have mostly mitigated mitigated those risks.