I'd imagine the insurance inspector didn't realize that. 

Even thought you will "make less" each month, I imagine the savings of cap ex and maintenance for the lifetime of the tenant as well as the lower turnover rate is much more worth it.

Imagine finding a great opportunity, but it's not right for investing. 

This, IMO, is how people spend a ton of money taking classes from gurus, but then never do a deal - they never find the one they imagined. 

My name is Mondre, I'm 25 living in DFW (Texas) and have experience in many fields but never would've imagined I'd be interested in investing in Real Estate.

Again this would be to prepare for an eventual eviction, where you have to go explain yourself to a judge.One tip I have, everything you do, imagine you are doing it in front of the judge.

I don't have a handle on estimating the rehabs but I can't imagine it will be less than $100K for each property.Question: Is a project like this - basically rehabbing 3 buildings and 12 units a viable project for a first timer.

I've done these for 25 years and I've made every mistake you can imagine and a few mistakes I made up on my own that nobody knew were mistakes :-) So, to get an idea why this is so powerful and has made me a LOT of money read this spreadsheet3 Ways to Wealth in Real Estate – Fix & Flip, Buy & Hold, Turnkey (Cash flow) – Here’s Howhttps://www.biggerpockets.com/forums/311/topics/780022-3-ways-to-wealth-in-real-estate-cashflow-flip-hold-here-s-how

If this was straightforward "mystery claim", I'd say just call the title insurance company, but I could imagine them somehow getting out of the claim due the contract and possibly "less than 100% honest" negotiations with the wholesaler.   

I can only imagine the legal liability if something should happen ( they bring a propane stove in and it causes a fire and people die) I don't think your insurance would cover it either since you are aware and took no action.