I practiced law as a biotech IP litigator on downtown Boston before jumping to RE full time.

In my real job, I am a litigation attorney with extensive experience in real estate contract disputes, non-disclosure cases, realtor commission disputes, and landlord evictions.  

A thorough response as always.I have my own take, and as any attorney will say, this is not legal advice...For the asset protection purposes you need both (1) insurance and (2) properly structured company for litigation protection, an LLC/LP/etc.Insurance protects your from nuisance that occur on the property; i.e. slip and fallThe company structure protects your assets from litigation liability; i.e. gross negligence (health and safety, alleged known hazards, fraud in the sale of the property) as well as someone getting to your assets by suing you personally (e.x. you got into a car wreck that exceeded the coverage of your policy, now they can go after your assets)The due on sale clause is often a concern, but me and my colleagues view it as a very low risk for a number of reasons.

Also, if you have an attorney that knows litigation they are better at advising you on what would really happen even if the bank made a move (which they likely wont) and how to protect yourself from any adverse affect. 

A landlord may not terminate the lease, but under the Servicemember Civil Relief Act the tenant may terminate the lease with the proper written orders without penalty. 

That's how I got started (1978).The legal information that you to study is primarily found in CA Civil Code Section 1695 as it relates to Equity Purchase Agreements.Also, study CC 2924(a) et seq. as these are the laws pertaining to non-judicial Foreclosures.I believe you can still download a copy of the Equity Purchase Agreement which includes the statutory 14 point type font language at Ward Hanigan's Foreclosure Forum website.I still think the most successful people who are looking for super-bargains (meaning properties with lots of existing or created equity will do their best work by a combination of mailing, calling and knocking as owners are getting pounded by direct mail pieces.

This opinion may be a little biased in that I work as a land use/site Civil Engineer.

The first one we purchased we had to litigate with the city to get them reduced.To figure out purchase price you should discount gross rent.  

That led to defect litigation, a re-clad and a special assessment. 

Being politically correct is one thing, but being a lightening rod for litigation is another.