Have you looked into single family homes with mother in law suites?

My property manager told me he's seen people do this, only to have the corporate veil easily pierced in a lawsuit because the mortgage is still under the individual's personal name.  

TLDR: $750k house in best part of town on a $140k single person salary, with a $2500 mother-in-law suit and 2 extra airbnb rooms. 

They are also on the hook for your actions and would be named in any lawsuit that may arise by your actions in real estate I am sure you would not intentionally doing anything to warrant a lawsuit but they do happen.

Those weren't real lawsuits, just him telling it that way to be a drama queen, since he obviously came on here to troll. 

There are lawyers making a living solely on security deposit lawsuits.  

The best way to do this since it is a one off deal is to buy the property as tenants in common, your LLC as 50% and your partner as the other 50%.For me, coming in to an existing LLC as a partner means I am at risk for any law suites, etc you may have or may have coming against that entity.

I've always held title in an LLC name, the main reason being limiting my liability in the event that a tenant or someone else initiates a lawsuit or other action as a result of something that occurred on the property (nothing to do with financing- as you note the bank has the overriding claim).  

What we do know now:Tenant has changed locks.House has some issue with sewer gas coming up into the home, which may have happened from property managers husband plumber fixing pipes as we did a huge repair and it started around then.Tenant is now reducing rent by 1/3 legal in New Mexico because of sewer gas.People who we have tried to look at the property to fix the problem have refused to work there because the tenant is freaking them out and talking about lawsuits and looks like she is on drugs.People now keep mentioning drugs to us, but when we spoke to the officials they had no records of tenant other than a fresh eviction before our house. 

I also suggest you buy an Umbrella policy covering lawsuit.