Would an umbrella policy be sufficient?

The cap rates on most of the listings I have seen would send a numbers guy (like myself) running for the hills.By that same token, I have seen more negotiation in larger multi family then in any other RE that I have experienced.

While it is certainly true that Billy ought to have sufficient reserves and all that, the fact is that there are many times where not actually being bound to the higher payment would be beneficial.

If you're in a situation where the building is self sufficient/funding itself, I'd do it.  

Even local courts may have local rules.Generally, legal publication such as "Notice of Petition" to creditors and other potential claimants will not provide you sufficient actionable information to market and merely notifies others that a Decedent's estate is being probated.You can monitor obits and research if decedent owned property.You can use the legal pubs to pull indivisible files at the courthouse as well as those  that did not require legal publication.Alternatively, you can pay a researcher (whom you are likely to find at the courthouse records researching files) and pay them to collect data to your specifications. 

The original property we bought on seller financing was structured so that there was no due on sale clause as long as the trust deed was secured against real property with sufficient equity and cash flow.

If you're planning to do all cash or you have sufficient income, then there's no 2 year minimum.

The amount you need depends on the age and condition of the property.  10% for CapEx is sufficient for the initial analysis.  

I'd put more weight in current income and rental references, both of which seem more than sufficient.

Apparently the FHA loan has a self-sufficient guideline that states, “Subject must be self-sufficient. 85% of the Fair Market Rents on all units per the appraisal must be greater than the PITI”.