As an owner of single family rentals, it's on me to adequately vett out and keep on top of the performance of my property managers.

Basing insurance price on past losses does not adequately compensate for the future risk which is higher.  

Unfortunately enforcing specific performance on a seller is a rare remedy, as most often compensating the buyer for any monetary damages they have incurred is seen as an adequate remedy. 

There are several hurdles during the process:Find the deal - Unless you are marketing or plugged into a community where there are opportunities, it isn't always easy to find the right dealsEvaluate the deal - Without professional guidance and research tools, it is difficult for a newbie investor to evaluate and ARV/FMV or create an adequate rehab budgetSecondary exit strategies - If things don't go as planned are their other opportunities to exit profitably.

If the local market is healthy and rental income will be adequately managed by a property manager, then a long term residence could be used to build equity.

@Irina Badal The best way to protect your rental investment is to carry adequate insurance. 

House hacking a 4 plex is a good plan, and you may even consider getting normal financing with 20% down - just have a little more patience to save more to have adequate reserves.

There is no way to really get an adequate perspective because there will always be a very wide variance of thought processes.

The security deposits from the tenant may be held in a trust account outside of the State of North Carolina only if the landlord provides the tenant with an adequate bond in the amount of said deposits.

Most times landlords don't have data or cannot adequately factor in vacancy time or turnover rate.