When you have a few properties no big deal but as a person amasses an empire, and has all that beautiful cash-flow, the lawsuit jackal's will follow.

Never a lawsuit or even a threat of one.

Quickly file a Small Claims Lawsuit for the last month's rent and late charge. 

Boom you have a law suit.

If you ever file a Small Claims Lawsuit, Eviction, or response to a municipal complaint, documentation that is dated/timed is accepted (and expected) to support your position.It's only a waste of time until you need it. 

These are exactly the type of individuals that will be able to successfully win a lawsuit against you should their return be disappointing.Raising capital in a way that gives you the best chance for success requires a verifiable track record of success in similar deals; capital of your own to invest to align your interests with those of the passive investors; and compliance with a safe harbor exemption from SEC registration which usually means a Reg D filing, the cost of which is $10,000 to $15,000 for the most basic.

So my partner and I just bought a 4 bed 2 bath that is broken up into a 3 bed 1 bath (main house) and a mother-in-law suit that is a 1 bed 1 bath.

I'm sure this answer also changes as you grow your business but as a newbie with just a few rentals what is the best way to protect your personal property in case of a lawsuit.

So do it...a Small Claims Lawsuit it inexpensive and easy to file. 

I posted this on another website today.Man I'd make sure you've got great insurance with all of these scenarios pregnant with lawsuits...I've got personal liability insurance.