If you can put the deal together and find your buyer the financing through a private money lender or a traditional bank that's easy to work with, that's going to make it much easier for you to sell that property and add value than it would be to do cash-and-carry.

Does anyone have any suggestion on Builder's risk insurance?  

At that point you can decide if you can risk having a little less one or two months if going for that next property.

I am trying to get a general idea in order to limit risk and figure out where most success has been experienced.

According to the lease they owe the rent for the entire term of the lease, but with the tenant claiming they are in the witness protection program now, I can assume its not true, but I'm not willing to take any legal risks until I am more educated on the subject.  

Turnkey properties (along with any single family investments) carry significant tenant and capex risks.

There's always risk involved, and unforeseen circumstances, but using your lender as a resource can help mitigate that risk.

we are taking on more risk, and so we need to follow much more stringent guidelines for those loans.

I started out by fixing up and carrying paper on mobiles in 2002. 

When investing remotely you are taking on a little extra risk but you are also paying extra in fees for someone to do the extra small things that you would be able to do if you were local, i.e. walk through a property and analyze the area, review construction to make sure it is being done and to your standards.