If you dont pay by next Thursday, I'm going to tell my atty to file it and take your property."

You might be surprised, but your rental properties have more in common with dividend-paying stocks than you think!

Some folks love that, some don't. 

They are essentially giving the property to you at fair market price, so someone is going to need to pay taxes on that fair market price.

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 expected to be higher, you may consider an umbrella insurance policy.

Tenant shall pay the flat fee of $_______ as an Early Termination Fee, which shall becomeimmediately due upon a deceleration of Default.

Please don't believe the hype of these gurus and for the love of god do not pay for their courses.

Location and paying attention to Nathan's points above about the immediate area are more important.

I have a list of folks I can send your way. 

If you go RBTR, here are a few key criteria I've seen to assure comfort of living and lower vacancy / turnover:- at least 400sqft per tenant and no more than 2 tenants to 1 full bath -excess parking where folks aren't blocking each other in and you're not getting complaints from your neighbors about overtaking the street parking.