Clifford I’m not a probate expert, but.....You were never in danger of being liable for the mtg (loan) no matter what transpired.If the property was transferred to you, yes you’d be responsible, as the owner, for the taxes, not that non payment of taxes affects your credit.Note, telling the bank “you can have it back” doesn’t change any legalities.  

Are there any local experts who are crushing it in your market?

I recently attended a training with Denise Lones (the Lones Group) who is an expert on predicting the market.  

We aren't experts and feel like we need direction from an expert.

I have listened to some Youtube videos and attended some events in which experts gave their opinion.

Become a subject matter expert for the portion of real estate investing you're interested in.Focus on what you can change/control, and the rest will follow.

I am not an expert to maybe you should consult with lawyer and accountant but if its sole-ownership LLC, it doest not really matter for tax purpose if you are filing schedule E. 

I also removed a diving board from one of the pools, as the insurance company I wanted to use would not even write a policy with a diving board installed.In the meantime, I would like to know your thoughts on this, as far as how you may have handled a situation like this, or maybe an insurance expert that can give me advice on what coverage I need to have to protect myself?  

Find a local expert on the ground that's able to explain the market to you and act on your behalf.

You want them to think you're an expert who has done this 100 times.