Thanks in advance,Aaron  @Aaron Washington, we have a fantastic insurance broker, based here in Kissimmee who is very familiar with the STR market and can quickly get you a number of appropriate quotes (the well known and lesser known companies) DM me your email and I will intro you.

I'd love to connect and see how we can help each other!

I can not wait to see the value in this community, and to contribute in any way possible. 

Or, OP can sinply avoid doing business with anyone who does Sub2 as they're likely a criminal or a con artist.  

The remaining $1.2M has not yet been accounted for.I can easily find more investors to fill in the remaining $1.2M, but I was wondering if there are banks that lend money to syndicates that could fill in the last $1.2M at least in part?

If market appreciates you can get a HELOC on it or cash out refi in a few years to scale faster.

Would love to connect and see how I can add some value on your journey! 

Looking my insurance policy it mentions that I can opt for settlement under Actual Cash Value vs Replacement Cost. 

One of the biggest problems that can crop up with a wrap is that the first mortgage holder is alerted to a change of ownership via the insurance policy update, and calls the mortgage as immediately due in full.

Have them use a loan servicer so you don't get into future disputes on the balance, plus then the servicer can handle the escrows.