There are laws (and statutes with three "T"s) that may apply in these situations on both a state and federal level.

Sorry to hear you're going through that situation.

I have an interesting situation with a now former tenant that has come up.  

It's recommended to discuss with an attorney knowledgeable in your state laws to determine the benefit and best structure for your situation. 

you need to dodge capital gains and foreign buyer tax.. you should consult a tax expert..If I was in this situation I would just sell (not advice) and buy a cash flowing mobile home park in the midwest

Umbrella insurance is usually a very large policy of $1 million or more, extending your coverage for larger situations.

Any other questions about my situation let me know.

I totally agree with the idea that local markets offer better value in the long run that cheaper out-of-state markets.Finally, Just because an experienced property manager would not do a house hack or purchase a small multifamily property does not mean it would not be a good fit for you and your situation.

I tend to lean toward my clients getting some experience owning a standalone rental property prior to buying a live-in multiunit, but at the end of the day, every situation is different. 

Josh I find myself essentially in the same situation and I have been thinking about my options.