But you probably know the answer they will say.The important thing is "do you have manager authority" but in a lawsuit can you really hide with that line or will they name the entire GP.

I've purchased my property in my personal name, then transferred them to an LLC.An LLC provides you anonymity (if done right) and it separates your investment from your personal assets so you reduce risk of losing personal assets in a lawsuit.

What is the best way to avoid loss of properties when it comes to potential threats or law suits?.

If it is an $8.00 increase, the tenant is paying for it.As for lawsuits, I guess you can get sued or anything, but if I am bring them a lawnmower new in box from Home Depot, and they misuse it, I don't know what the liability is on my part. 

If your 12 lots were legal lots of record prior to the Zone Change and General Plan Amendment the City HAS to let you build on them or can be subjected to a lawsuit under the takings rule.

If the sale was by a quit claim deed, or almost any other deed other than warranty deed, then depending on if any other documents were signed by seller regarding liability for “back taxes” he may not be responsible.Since as to the taxing authority the taxes stay with the property, if you or someone doesn’t pay them, and assuming no mistake was made as to their status, then your property is subject to any and all relief available to the taxing authority, including lawsuit, lien, or foreclosure action.

A law suit was initiated regarding the defaulting note (and other notes that were in the same situation) and further down the road, there might be some money coming my way from that.

I just purchased a 1950s ranch that has a 1 bed 1 bath in-law suite attached on the side.

The few hundred you spend getting a lawyer to do it right for you will save you thousands to defend a lawsuit on something you "downloaded" from the internet.Any time you "pool" money, 99.999% of the time, it will be called a security. 

Paid off homes have less risk, unless you look at them as targets for lawsuits.