@Joe VilleneuveI do recognize that the LLC strategy is a viable one but I for one would not feel comfortable with being on the buying side of a transaction When I purchase a property directly, I have the some protection with the purchase of title insuranceFor instance, any lien, judgement or other encumbrance must be filed in the county that the property is located.  

Theoretically they could sue you for payment, win a judgement and file a lein against the property.Your best approach would be to contact the hospital and assuming you did not have any insurance, offer a payment plan for 50% of the bill (for some reason hospitals charge higher for service to non-insured patients and insurances (including medicare) pay at a mush lower rate).

I did not know that the County won't let them open up a rent escrow if they have a judgement against them.

If you don't act negligently, you greatly reduce your chances of ever having someone win a judgement against you that would be able to effect your home.I currently do give my home address to my tenants.

The LLC's assets are at risk if you act negligently (and the judgement goes over the insurance limits), but the point is to create a firewall between the LLC and the rest of your assets so the creditor can't go after them.

JC - Having access to money to use to buy property can be an intoxicating thing and can sometimes lead to clouded judgement.

I guess usually because the amount of damages is so far greater than the value of their assets that they are "judgement proof" anyway.

When there is not even near enough info to make that judgement?

This screams for judgement histories to be run.Be thorough but legal in your process, as Jon mentioned, but contrary to the "social responsibility" nuts looking to get elected, your first problem is to survive this business, and you must use all information at your disposal to do that.One bad tenant can put that into jeopardy.

There is no reason to have your property tied up with a long term lease as the tenant can leave at any time and generally cannot afford to pay a judgement if you sue.