Insurance must be actual quotation not based on 5%.With a negative income month after month with half a mil down payment I will wonder why I bother with an investment ? 

Lanny I've singled out some excerpts from your post in the quotation above so I can address just these specific topics, hopefully this helps!

First order of business get at least one former appraisal, inspection, and contractor quotations.

The quotation notations here are sometimes confusing.

@Eamonn McElroyYes, “gifted” was place in quotations because these would qualify as gifts even though the money is being gifted for the intended purpose of purchasing the property.

(without the quotation symbol)

Quotations were used because the term is subjective and hard to define from a numerical perspective.Yet, to measure an individual's true financial stance, I believe net worth should have been used instead of income.

The only part I’d send them is in the quotations of my post.

The best way to verify the quotation is to get a quote from another contractor for the same work.

Quotations marks is there because I am not sure if there is an official lease contract or just a informal arrangement between the seller and that individual.