This gives much better diversification protection across geographies, asset types, strategies, investment subclasses etc. versus putting all the eggs into one basket.The downside is that it's not for everyone, and a person has to be comfortable with turning over control to someone else.

If you are getting a loan no there is no way to protect yourself from crushing your credit or having a foreclosure against you if you are the borrower. 

Typically people only get insurance on things that they own, or liability insurance for their own protection. 

If I protect my numbers, interest rates would have to be 3.5% or so in order for a 1% house to work (assuming 20% down), which means for $3000 rental revenue to work, the debt load would have to be about $235K at that interest rate (give or take with variable taxes and insurance numbers). 

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

But do you due diligence, protect yourself and be prepared in case it happens.

-Start at a title company- they will help you structure liens and deeds so that your interest is protected properly.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

Forming an LLC for your rental property can offer liability protection, but no real tax benefit.

This is a passive way of earning with real estate-based security, protection and insurance.