That would be considered excessive, but it doesn't sound like that's the case.From your story it sounds like you withheld rent because certain repairs were not done and you have been served with an eviction.

Hey guys so I'm working on my second deal and it's my first exposure to private and hard money.

I come from a family of real estate investors so I've had many years of first hand exposure before even considering this career path.

They may , however, have been doing what was necessary to get the house ready to rent, etc. depending on the size and amount, they may be completely normal, or excessive. 

@John Powell Based on the numbers provided, there is no capital gains tax exposure for this couple since they are married and it is their primary residence so they get a up to $500k capital gains exemption.

You did not indicate if you were paying PMI and insurance in your payment, but assuming you are not you have an equity pay down in excess of $1300/month. 

I'm currently looking into mortgage shopping and am doing a lot of research into the topic, and I then hit a thought that has caused me to hesitate: should we all put our names on the mortgage, thereby legally spreading exposure and allowing us to combine our resources (cash reserves, credit scores, etc.) or should one of us apply for the mortgage. 

Just picked up the excess tax list for my city!!!

As a potential seller of your home, do you value the almighty dollar more and go with a discount broker or do you feel fully paid commissions for name recognition and big brokerage exposure is well worth it?

The GL policy will cover most, if not all of the risk exposure you have from tenants, but make sure you read carefully the policy itself.