It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estateUnderstand you can not eliminate all risk, only mitigate it.

Where people went cheap with online brokers, many of those companies just did not have the resources or expertise is seemed in many instances to handle claims. 

Laws are now passed that prevent you from renting to yourself and claiming all the losses.

These risks can happen to anybody no matter the type of investment they make like your investment house can blow up and insurance doesn't accept your claim, you could get hit by a bus, and boom no money, and so on. 

This guy claimed to have hundreds of homes which was a complete lie and then drives idiots around the Philadelphia hood in a party bus for thousands of dollars. 

It might help you avoid penalties if the IRS goes after you later.You can claim the labor expenses even without 1099s, but you will technically be in non-compliance.

As of my last update in April 2023, the definition of an accredited investor includes, but is not limited to, the following:Income: Individuals who have had an income of more than $200,000 (or $300,000 together with a spouse) for the past two years and expect the same for the current year.Net Worth: Individuals with a net worth exceeding $1 million, either alone or together with a spouse, excluding the value of the person's primary residence.Insiders: Directors, executive officers, and general partners of the company selling the securities.Professional Experience: Certain professional certifications, designations, or credentials or other credentials issued by an accredited educational institution may allow an individual to be considered accredited.Knowledgeable Employees: In the case of private funds, "knowledgeable employees" of the fund are also considered accredited investors.Institutions: Banks, partnerships, corporations, nonprofits, and trusts with assets exceeding $5 million.By imposing these criteria, Regulation D is meant to ensure that all participants in such an offering are capable of fending for themselves or sustaining the risk of loss, thus requiring less regulatory protection.Under Rule 506(c), it is not enough for an investor to simply claim accredited status.

Granted, house hacking isn't as destructive as a live-in flip-- it's on the spectrum of uncomfortably while having a family.While Gregory may claim it's awesome, I highly doubt it.

I have, however, gotten other tenant types form Zillow - mostly insurance relocation claims

Since you mentioned a construction site injury in your initial post, the best way to proactively avoid premises liability claims is by keeping a clean worksite.