The first pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments(maintain your property, etc) - these simple steps will help you prevent lawsuits before they even occur.

In 2016, my journey into the world of real estate began, rooted in the vibrant community of La Mesa, California and when I joined the BiggerPockets community.

Providing clear instructions and specifications helps prevent misunderstandings and ensures that everyone is on the same page.

I wouldn't let the tenant-friendly ish policies in WA prevent me from being a landlord here. 

You probably won't get paid, but it should help knock her and hopefully prevent her from doing this to someone else.

If they allowed you to install a generic box for the address, what's to prevent everyone with a multi-family from doing the same and thereby adding hundreds or thousands of addresses to a city?

You do realize the market has stops in it to prevent trading in certain circumstances.

Your PM should have prevented this situation, imho.  

Doing the right thing and treating good customers like good customers doesn't prevent you from making money - it will help you make money in the long run!

It's designed to prevent taxpayers from deducting passive losses against non-passive income, which often leads to situations like you've described.Your concern about potential double taxation on the $2,000 net income is valid.