Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

I recently bought/negotiated just over 40% off asking price on a house listed for only 1 month.On an overpriced house that I may have interest in, I may call the agent and ask if the buyer would consider an offer in the price range I suspect is reasonable.

I would agree that if your thinking of flipping land, you would probably want to consider an entire region (like Central FL or the entire west coast).  

This is a freebee for subscribers to The Allen Letter which many community owners consider an absolute necessity.

Im a firm believer in house hacking (if i had a family or needed more space) but if you are single and good with renting a room, I would consider an alternative.I would continue renting the room from your friend (assuming the rent and living situation are a good fit for you), and THEN buy the Multi (duplex, quad) or what ever else you can afford.Renting a room from friends keeps your living expenses WAY down, gives you much more flexibility, allows you to live independently and away from your tenants, and allows you to maximize your investment returns on a your up and coming real estate empire.

To consider an extreme example:What if you made money every month, but knew that next month you'd have to pay $10M in taxes? 

Personally I would never consider an asset without equity and even in second position with equity your position can be jeopardized if you are not careful.

In the event you try to evict a tenant with no-fault they are entitled to a relocation fee:https://hcidla.lacity.org/Relo...If the price is right and the location makes sense, I’d be willing to consider an ‘as is’ purchase. 

And only after that as third layer of defense you may want to consider an LLC.

The overwhelming majority of PMs are not going to consider an arbitrage arrangement for liability reasons, among others.