@Chris Morris have ALWAYS seen bad "deals" from rookie wholesalers that really don't understand what they are doing to provide value to the industry.It's getting worse because the real estate market has recovered from the 2010 Crash, yet many are still using tactics & methods developed during this time.Everyone in the industry needs to go back and look at what was being done BEFORE 2010 and start using those methods, updating them with current technology.

Any recommendations for Umbrella insurance providers for each partner to cover any liability?

He is no longer responsible for insurance, maintenance, or dealing with the realities of renters. 

I’d hope that the inspection fee and markup would cover the costs you are mentioning.He sells all the renters insurance.  

To avoid similar rip offs in the future, the investor needs to bear responsibility for vetting any investment offering they're contemplating, or if not just leave your money in government guaranteed investments (like FDIC insured bank accounts).  

The patent on the 30 year with taxes and insurance was 3900 or so.   

A good rule of thumb is to have 3-6 months of expenses (mortgage, utilities, insurance, etc.) set aside per property for emergencies.

I am sure I will be very publicly wrong, and you all can make fun of me in two years, when stocks double and real estate prices crash 20% from here, but I just don't know how you can watch this industry, this closely, for this long, and not be raring to go in the current environment. 

Deals like this are NOT GOOD for any of us in the industry it makes it more difficult for us to raise money for projects.

Insurance liability, I personally know 2 families that lost their children in home pools.