Can add a in-law suite for lots of value.

Section 8 housing is not a secret but it is plagued with problem tenants, lawsuits and low profit margins. 

The reason you see a person’s name and all their entities listed in a lawsuit is because Plaintiff (the suing party) attorneys have to list everyone and every entity that can be remotely tied to a cause of action, otherwise, if enough time passes and through the legal process discover that a separate entity or just a person was truly liable and they didn’t name them in the lawsuit, they are out of luck.

Pretty pointless lawsuit IMO. 

The risk of property damage or a lawsuit from a dog bite is too high. 

Security deposit will take care of the last month of unpaid rent, but I'm considering filing a small claims court lawsuit to get a judgement for recoverable damages.

A lot of our housing stock here has finished basements or in-law suites, so with something like that you can generate significant rental income for an inexpensive conversion. 

Perhaps due to the threat of lawsuits.

They have over 100 pending lawsuits against them and counting.  

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city).