I understand the liability concern, and I think that can be managed and mitigated with appropriate insurance levels.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

However, you can mitigate these elements by finding good partners who have done this and partner with them (their capital + your capital).

To protect yourself, make sure there is something stated in the loan docs showing that the reserve will be set aside for the first 6 months of payments.In regards to the $60,000 hold back, some lenders want to manage the construction process and mitigate the possible misuse of funds.

., mitigating risk, leverage to serve more clients etc.

Many states require those who deal with mold mitigation/remediation to receive certified training and carry a license.  

Many investors recreate it anyway in their validation and underwriting process and some will reduce their offer price to mitigate risk.

., mitigating risk, leverage to serve more clients etc.  

Sounds like they are trying to mitigate blight, but quite extreme. 

If they claim to have the money in savings then great pay it up front to you in advance rent and your risk is mitigated.