Some of the issues I have clarified so far from this and other forums:1.

I understand this is not a requirement, but I have never received a damaged unit from an inherited tenant or any legal issues.

You may run into issues since it's a smaller loan. 

of course the sale of hurricane damaged houses also confuses the issue (my house had no such damage but is only about 4 blocks from houses that did).

It separates your personal assets from your business, providing a safeguard if any legal issues arise related to tenants or the property.

There were a number of issues, but the big one was a "repair" charge they lied about.

I’m interested in purchasing an investment property with equity I’ve developed in my current home, however I’m concerned that if I have an issue renting out the new home it can blow up in my face.

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

Tenant issues?

I ran into the same issue.