If rent payments are missed or damages occur, this gives you legal recourse against any or all tenants.Best Practices:Professional property managers, like those managing rentals across North Texas, always screen every adult living in the home.

At the time, it never occurred to me that if you want to swindle people it is difficult and expensive to take legal action against a company that is incorporated in a different state than where they do business.

If these type of damages occur in the future, I would recommend holding the tenants deposit, or if there is a claim to be made through the insurance you sell them you could approach that avenue.

What are the biggest challenges people have faced with this. Also how do I make sure to get good tenants?

We have an insurance policy on the rental house (through State Farm), that includes a personal liability section, which is essentially equal to our current net worth.Given that a tenant could sue for more than this if an accident occurred, we are thinking about adding either LLC or an umbrella policy (or both) as extra protection.Any advice on which way to go, and if LLC, any recommendations for a law firm or company the Indianapolis area?

If it isnt and damage occurs from guests, they may  not pay out.

Lesson: Keep a nice house and inspect before the inspector.Inspections then occur annually and you don't get paid if your property fails until you pass again. 

Things break and issues occur every day of the week, uplanned. 

What percentage of your loans would you estimate for the transactional funding to occur on the same day, at the same title company, where end buyer's funds are in escrow?

over runs do occur but 50% is really crazy.