But high level:1) If the units rental income doesn't cover mortgage its not going into my buy/hold portfolio , I have a separate "appreciation" portfolio for that on (think San Francisco where CAP rates are 3-4 , but if you can wait out or turn low rent controlled tenants you can improve the building profile.) 2) I am currently looking for places in B- to A- areas.

With proper tenant screening (going back to a good PM!)

You might have noticed that people that have been successful with rental units in  houses have to own about 20 or 30 of them just to cover their monthly bills, then they might get some of the profit when they own 30 or 40 all at different addresses.With apartment complexes you might just have one address where you have many units. 

Does anyone have any good resources for an initial screening list of things to check for structurally or other issues a home inspector should find?

It is the most crude screening tool and the actual percentage will vary by area and your goals. 

Curious, under what basis is the insurance co. trying to put this on you.....the cause of the suit is not a covered action?

It takes very little time to self manage once you have screened and placeed new tenants.Try and stagger your leases so they aren't ending at same time. 12 month and 18 month or something along these lines.

When the garbage disposal crunches through twice as much stuff, it dies faster.The floor coverings wears down twice as fast.

The key is proper tenant screening including thorough checks of the information on their application.

If the property needs tons of work or tenants are sporadic in payments you could actually be paying out money monthly and be saddled with debt.The rate and payment given are great. 12% down is just enough to maybe cover foreclosure costs if you do not pay the note.