New York recently passed the “Good Cause Eviction” which protects tenants from eviction without legitimate reason.

It goes deeper than that.NYC Liberal policies, including strong tenant protections, increases the risk of failure so much that the risk far outweighs the rewards.Financial ruin is just around the corner for the small Mom and Pop Property Investor that it doesn't make sense for them.The Tenants will have free Attorneys that are bent on delaying eviction cases so long that it stretches into years while Mom and Pop suffer from lack of rental income and still have to pay all the bills and do the management.Additionally, the increase in homeless living rough in the streets due to Sanctuary laws causing a lack of shelter beds, then evicting shelter residents after 30 days creating more homelessness, policies that tie up the Police's ability to arrest perpetrators, etc. only causes Mom and Pop to sell out at large discounts to larger Landlords who are capable to use Economies of Scale to eek out a profit.These larger Landlords will eventually turn a much higher profit as the pendulum will eventually swing towards the middle when the NYC Voting population eventually realizes that it's not a conspiracy of the Rich that's causing the Wealth Gap to increase.It's the same liberal laws that encourage people to become lifelong tenants, small Entrepreneurs (including Property Owners and small Mom and Pop Businesses) to be destroyed, and Rents to rise astronomically as housing becomes scarer even when the population declines by as much as 7% in the last several years. 

However, what you suggest can be "a thing" in actual squatter situations, especially in places where owner's rights are not well protected.

When you select the next tenant I would certainly ensure that you have your eyes on the applications that are coming in, and ask that you are involved in the decision making process. 3x income, clean credit and background checks should be a minimum for approval, even if it takes a month or so to find someone. 

.- Insights on the best practices for structuring these entities for optimal asset protection and tax efficiency.- Any potential pitfalls to watch out for during this process.If anyone has navigated a similar setup or has referrals to professionals who can help, I would be extremely grateful for your input!

But Arizona provides fewer tenant protections, even as rents have soared.

With inventory up an impressive 90.1%, buyers have plenty to choose from—making it a terrific time to shop around, consider multiple options, and find the right match without feeling pressured.Sellers, in a competitive market like this, a little patience and an eye-catching presentation are essential.

This will protect both you and your potential partner.

Perhaps hire the PM as a second set of eyes for quality control but that should be in addition to the GC you should hire from day one. 

Just don't buy into the lie that it's necessary, that it's a 100% guarantee of protection, or that it needs to be complicated.Here's some generic advice.An LLC is useful for two things: anonymity and legal protection.