As you mentioned, having buildings in bad areas with bad tenants or not having adequate reserves are MUCH bigger problems than having a mortgage payment.

Is this just the nature of obtaining an investment loan or am I going about something the wrong way?

The insurance company will try to determine what caused the crack ... if it was natural soil expansion/compaction, it's unlikely they'll cover it ... if it was, say, from a plumbing leak, there's a much better chance they'll pay for, at least, a part of it; however, that would then pose a different issue for you - I've seen new policies become very expensive when there are prior water damage claims on the property. 

As for BRRRing out of state being made possible by great relationships with an amazing GC and property manager - these relationships naturally ONLY develop over time (maybe started with turnkey rental and got to know then this way) or are there those GC's and PM's who specifically work with out of state buyers?

People love their animals, so instead of treating their furbies as liabilities, I would say "pets welcome on a case by case basis with deposit" or something of that nature.

If you don't have it, then the next natural step is to partner with someone who has.

(My uncle and aunt had quite an apartment portfolio in LA, but they happened to die suddenly, without adequate estate planning, in the early 1990s--so everything was lost.)I've built a recession into my development business plan: line up cash and credit lines now, deploy in 1-2 years when construction prices are hopefully better, plan for a long hold period and be flexible about when to recapitalize, and choose markets that are more recession resistant.

That will allow you to see what they do, how they do it, and gain favor with them that naturally leads to learning. 

Originally posted by @Steven Picker:@Branden Miles she doesn't own the lot she is renting, find out what the lot rent is and how the price she wants for the home, simpleAs Steve said, the building owner is "renting" the site, but the nature of the lease will be key.  

It will reflect natural willingness to visit.