Course like with any risk the larger the sample the greater it trends toward its true probability so assuming the portfolio described here is large enough and its characteristics are as you described it will start showing at some point though that many be years from now. 

Some people really like moving furniture around frequently. 

I read and post on MMM pretty frequently now.  

Otherwise his ARV numbers are garbage SWAGs pulled off Zillow.Those characteristics do not describe the typical wholesaler fresh out of a guru seminar/webinar. 

Something that sold for 100k a year ago is now selling for 200K, yet there are frequently appraisers that will appraise that house still for 150K and use fixer uppers as comps.

Landlords who violate codes are frequently fined and are held on criminal charges when someone gets injured. 

They do for me very frequently.

Is this not PM responsibility to push back if claims are happening very frequently?

The reality that, more frequently than most people are comfortable with, there is no other reasonable choice, that the owner has to be the handyman/contractor of last resort, and that getting a real estate business off the ground with anything close to approaching reasonable operating funds involves being able and willing to step in when the going gets tough, no, people just don't want to think about it.

(it's right beside me awaiting final review) If the documents are done well, they don't have to be changed frequently.