Most likely will still require a personal guarantee though.I would also agree with William in that if the goal is liability mitigation, consider an umbrella policy.

Being a 4 unit mitigates that a little, but it's still a lot to sink into your first place.

You can mitigate some of the cleaning issues by having maid service for the common areas and the maid may agree to add the renters at a good rate if they wish.

Education will always help mitigate mistakes too.  

We do it to mitigate risk and loss.

We do our best to mitigate for the tenant, as required, but a late summer lease that isn't occupied can put the vacancy in to the slow months, with a longer vacancy.  

@Arthur MayerHi Arthur, I run calculations for each exit or mitigation path, i.e., foreclosure, DIL, reinstatement, short sale, and modification (the latter two based on what you are willing to accept/offer).  

If the risk of a lender initiating its DOS clause and is of paramount concern in a Sub 2 then there are other methods to mitigate this risk.I've bought property using a land contract of sale, that in itself has a lot of similar risks of a Sub 2 transaction remaining unrecorded, and have been researching Sub 2 transactions.

Have you had a recent Windstorm mitigation survey performed? 

Are both a Promissory Note as well as a Deed of Trust needed for a small private loan (~10% of single-family house cost)?  I've gotten two "yes" and two "no" responses regarding the need for a Deed of Trust.  All four...