The biggest risk here is a tenant getting injured and suing you.With rehabbing, there is the risk of a contractor getting hurt and suing you - which is why most people look for fully insured contractors - and also why I don't bother with an LLC for rehabbing.

That’s several qualified adults earning income able to pay that rent if one leaves loses a job or is injured ! 

I guess I empathize because when I had to rent with my two dogs who injured themselves when crated, I had no choice but to let them run around when I left.  

You need to know enough though so that you don’t strike out or get hit with a fastball and end up injured on the bench. 

Tenant states that she got injured at work and out on work comp awaiting payments.

Ceiling fans need to be secured differently than a basic ceiling to be stable and this is of course electrical work so allowing a tenant to potentially do it is a liability issue if they got injured. 2.

Imagine if someone gets sick or injured.  

They file the lawsuit, anyway, because they know you will pay money to settle through mediation to avoid your having to pay your own attorney up to $400,000 to prepare to go to a jury trial and then they know that even if the Plaintiff wins only $1.00 you will have to pat the Plaintiff's attorney and that could be another $400k.If you don't think this can happen to you, then you are 100% wrong because when a lawn mower's employee is injured even when working for another customer and that employee sues his boss then you had better be prepared with EPLI insurance because YOU WILL BE NAMED IN THE LAWSUIT and that means you will be sued and you will need to retain an attorney.

Liability claims (a person injured, permanently scarred, or killed on your property) are in the hundreds of thousands, and often exceed $1M in the case of a wrongful death.

If someone injures themselves and sues, they will be suing the LLC and not you personally.