I understand the risk to that and feel as though I have accounted for that in my insurance planning. 

Your first line of defense against loss is going to be insurance on the property, then an umbrella or excess-lines policy on the company. 

I'm working to develop a stable, and passive income through real estate.

I will also need to insure the properties, so references to agents in the area who could give me advice on the reight policy will be welcome too.Thanks in advance,Carlos

Annual numbers are:Built in 1984 - Seems to be a B class complexPotential rental income $900K-$1M gross6% vacancy ($60K), $20K addition income from vending/laundry - no other amenities, $65K taxes, 5% ($50K) Capex, $28K Insurance, $16K contract services, $90K payroll/staffing, $150K repairs/maint, $6k utilities (tenants pay their own), $10K accounting/legal, $5k advertising/marketing, $100K (10%) PM (is that redundant with staffing?)

People have short memories and think stuff like that will never happen again......personally I would never buy in those areas unless I'm flipping it and moving on.....no way would I buy a long term buy and hold there.I just sold my property in Kingwood.....flooded all around the neighborhood but not near my property...it was a stressful 2 weeks..... really don't want to do that again....dodged a big bullet with no flood insurance and I'm not counting on dodging mother nature again

I won't be investing in the riskiest/most supportable asset subclasses such as hotels, and tilt my portfolio the ones that have historically been more stable such as multifamily and single-family housing.

I have read that most quitclaim deeds are unable to obtain title insurance so it's always best to have a title company run a report and make sure the title is free and clear.

Title insurance policy can easily be written to allow the encroachment.

There is likely no Title Insurance at this point.