Better to mitigate those with a lease before close contingency.

The 2nd lien holders know this and usually except their best loss mitigation, which is to take something (short sale) over nothing (foreclosure). 

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

Overall the house has great bones but it will take a few grand to complete the punch list of items needed to remedy: radon mitigation, surface mold in attic, slight leaks at a few easily accessible spots in the roof, electrical service work.

My state law requires landlord to attempt to find a new tenant asap to mitigate your losses.

There are, of course, many factors that go into figuring out how you would be able to survive such a downturn but that depends on what you invest in and your potential mitigation and exit strategies.  

Smoke mitigation may extend throughout the whole unit--time to get the professionals to look at it.

BF mitigates the risk of the GF with the eviction. 

Of course, we seek to limit and mitigate potential legal troubles and costs.

So you get a free LLC and no real estate closing costs which can mitigate some of the cost of the improvement exchange.