Could be the payoff got lost in the mail, could be that it was never sent.This happened to me and my title insurance covered it 

Money person is listed as on the insurance policy.

$966 + 334.24 + $80 = $1380.24 (PITI) MonthlyMarket Rent $1500 (-)  Monthly Mortgage $1380.24 = $119.76 (potential cash flow) not including vacancy factor, repairs, capex, hoa fees, additional flood insurance. 

I'm not sure how "well off" they are, but I'm guessing they are comfortable, as they are probably just about breaking even, if not losing money on this property after taxes, insurance, etc.They aren't marketing the place and we've never heard any mention of them thinking to sell.  

We will have liability up to 1M on the property.My questions stem from loan/Asset Protection.If we were sued, and for the sake of this discussion we are sued and lose $2m, would we only lose our $1m (insurance proceeds) and 20% capital (assuming we have to sell the property). 

I work with and get to know local bankers, insurance agents, etc and they might even give me leads-it has happened!

Need proper insurance in all aspects that's for sure. 

I heard the insurance can also be a real pain due to the hurricanes etc.Anyone with experience in either/both the FL & CA market that can weigh in on this?

With 20% down it will cost me around $930 after mortgage, taxes and insurance.

Treasury bonds and require tenants to pay taxes, insurance and improvements, can fool property investors.