Since you're planning on living in one of the units, you might consider an owner-occupied loan.

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.

CodeNotesprev | next(a)In generalSubject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other:(1)In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a Federal grand jury.(2)In accordance with the written instructions of the consumer to whom it relates.(3)To a person which it has reason to believe—(A)intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or(B)intends to use the information for employment purposes; or(C)intends to use the information in connection with the underwriting of insurance involving the consumer; or(D)intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant’s financial responsibility or status; or(E)intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or(F)otherwise has a legitimate business need for the information—(i)in connection with a business transaction that is initiated by the consumer; or(ii)to review an account to determine whether the consumer continues to meet the terms of the account.

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.

If possible, have them name you on the policy so you get notification if the policy goes into cancellation.Lastly, if you rent to a dog owner, you may want to consider an Umbrella policy. 

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.

Will consider an area specific post for some better insider info on this.

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.

That's why it's important to involve a tax professional upfront as you consider an exchange and not tell him/her after the fact.  

I would consider an individual lending you money out of a Self-Directed IRA or their bank account private; whereas hard money lenders typically are beholden to Wall-Street partners or fund investors and have underwriting guidelines they stick too.