I've seen wasteful tenant consume almost 30% of gross rents for utilities.What you really need to do is dive into the books and see what is Net Operating Income. 

Failure to do so may just negate the protection you are looking for.You should have title in the LLC's name, mortgage docs in the LLC's name, rent going to the LLC, etc.If you can't get it done properly for the time being, get the extra insurance coverage.Make sure to talk to an attorney to see if your actions are giving you the asset protection you are looking for.

Now, you as a consumer may not even know that they have an overlay....and their "entry level" loan officer may not know either. 

The normal course of action would be to file forfeiture, take the properties back, and resell them to someone who can make the payments.  

By signing below, applicant(s) give permission to (1) current and former employers to release any information about applicants’ employment history and income history to the above named person;(2) current and former landlords to release any information about applicants’ rental history to the above named person; (3) current and former mortgage lenders on property that applicants’ own or have owned to release any information about mortgage payment history to the above named person; (4) bank, savings and loan, or credit union to provide a verification of funds that applicants’ have on deposit to the above named person, and (5) to the above named person to obtain a copy of applicants’ consumer report (credit report) from any consumer reporting agency and to obtain criminal background information about applicants.

The best course of action is always to discuss with your broker and legal counsel in your specific situation.

I'll bring you a FidusFi shirt for having that kind of commitment to further your real estate education and take action right away like that. 

With a huge but actionable goal like that you are definitely on the right track. 

The idea makes sense in my head; I just want to brain storm with others then figure how to put the plan into action.

Take action, dont sit on the side line.