I would definitely be interested in hearing any and all strategies for vetting out tenants to mitigate headaches down the road!

If you incorporate and they sue, they can still roll you back for up to a couple of years.Wise man saying: Mitigation is good, addressing the direct problem is gooder  ;)

BrianI have a strategy I learned about some Tax mitigation.

But You need a large sum of cash to help mitigate your risk and that you can live on.

This ruling was put into place to mitigate the risk associated with the loan.http://203krehabnow.com/frequently-asked-questions...

What I was trying to convey was:-The goal is to quantify "RISK" and how your plan mitigates that risk.  

Looking back and knowing what I know now, I would've definitely had a lawyer draw up a contract in regards to ALL aspects of the partnership including dissolution in order to mitigate the risk of ending up in court, spending large amounts of money on lawyers and a great deal of stress.

Engineer your investments to have a positive expected value upside and a downside that you can reasonably mitigate, insure against, hedge, and/or actively avoid.

I was thinking that house hacking could help to mitigate this risk as you'd be your own tenant (or one of them at least) and close enough to actively manage the investment.

While you are waiting for that to happen, educate yourself on how to properly screen tenants and mitigate risk for when the bad ones sneak through.I use situations like this to educate myself and build policy to prevent the same problem from happening again.