HI Michael,Being in the position I am in I believe the reason for investors who hit this so called "wall," is because they focus on acquisition of assets not focusing on what the bank focuses on which is a the personal financial statement.If an investor can optimize their assets, liabilities, equity, and cash flow then they can get as much money from banks as they want.Lenders in the 10+ space generally look at debt service coverage ratio for the property, global debt coverage ratio, and net worth.Example:Global debt coverage ratio -  passive income $10,000 per month versus all expenses and net liabilities $2500  =  4.0x cash flowIf a borrower had a high global cash flow  and a high net worth then getting loans is easy the problem is most REI's dont focus on designing their PFS ahead of the actual financing need. 

Paul, not necessarily, officers and director or members are liable for their acts amongst each other and to the public should they not take reasonable care or commit illegal acts.Might be hard for a start up business to obtain performance bonds and obtain errors and omissions coverage along with a ton of liability coverage, ask your agent.Another safeguard might be a Hold Harmless and Indemnification Agreement made by and between the members, that can help keep you out of court in some cases, the indemnification is only as sound as the financial strength backing it up and there must be consideration for the Agreement, consideration may be viewed in light of the loss suffered as well as the conduct of those entitled to being made whole.

What are your thoughts on the coverage?  

Then they scream and get media coverage when their water is turned off.  

Liability coverage is a different matter.Most people will tell you 2 things when it comes to liability: Insure, insure, insure.  

Generally, it take just as much work for a lender to process a loan on a $250k 5 plex as it would for a $2.5mil 80 unit property, which is why the lean towards the higher minimums.DCR: Debt Coverage Ratio.  

I would MUCH RATHER have a lien placed before the sale because I can have coverage with title insurance and at least can react.

The insurance company paid for the floor damage from the dishwasher leak, and didn't pay for anything else, either because the $1000 deductible exceed the repairs or I didn't have the riders/extra coverage required (vandalism for example).2) In the past 20yrs, I've paid the following : $650/year/SFH (average) = $39k (assuming no inflation nor interest).  

Would anyone with experience in "house jumping" be able to give me a comprehensive rundown?

One guy I didn't use had a fairly comprehensive and elaborate loan paperwork package he did for $450.