They also said they see this problem ALL the time in Philly… when the city or a private individual knocks down a rowhome, they are responsible for treating the exposed partition wall of the next door property to protect it from the elements.

I would recommend you speak with your tax advisor and set it up correctly from the start, whether an LLC, Trust or something else.Also consider states different laws, maybe find a state with more friendly landlord protections. 

I currently have a few deals I am analyzing and I am close on securing one of them.Not only that, but his LLC guide and plan helped me protect my first property, since I did not know how important is to protect your assets.I like to invest in myself and knowledge, because it’s the only way to get out when your are stuck with investing, so I totally recommend to give his masterclass a look.

**Insurance Issues**: Ensure the property insurance policy is updated to reflect the change in ownership to protect both parties in case of damage.3.

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.

Quote from @Saijal Sindwani: This is an example of how DIY landlords fail to protect their investment.

The reality is we are not in business to protect any other landlord than those who we manage properties for, and the math for our client owners works out much better to get a bad tenant out as soon as possible.We will never give a bad tenant a good reference nor we will never serve as a reference for a bad tenant.

This approach protects the investor’s capital and allows the project to continue operating and eventually regain value.3.

So the idea that "pref equity" without a recorded lien is protected, to me, is simply false advertising.  

The number 1 thing would be to have a lawyer look over the terms and contract to protect you in case something changes for them through the course of the owner financing.