From a layman's perspective, if I have properties in AZ and am sued by a tenant  - would not I be going thru AZ court system to defend myself?

Police, doctors, nurses, teachers have their own special loan forgiveness after 5 years, social workers, public defenders.... basically anyone that is doing something good for their community.

If she tries to buy a car in the future she'll have to pay your judgement.Write a comment on the eviction filing form:   If defandant appeals to superior court, the defendant must pay full rent amount of $NNN into the court.   

There are also notices that attorneys are supposed to give to the defendants in most civil actions before entering a default judgment.

It is being fully understood that except as specifically set forth herein, Grantor has made no warranties, express or implied pertaining to said property, the condition thereof including but not limited to, matters relating to environmental conditions or hazards on the property"Then later on its says " We are the sole owners of the premises and have good right and title to convey the same in manner aforesaid, and that they are free from every encumbrance, except as aforesaid and WE hereby Warrant and Defend the same against all lawful claims....."

Some is, some isn't - so If you're serious about getting "creative", you really need to come up with a solid biz plan and consult with an attorney who can help you to put yourself in a defendable position with whatever strategy you come up with / engage in. 

"Recession-durable RE investing for non-accredited investors" How do you defend against recessions, without sacrificing ambition? 

NO there is not likely to be an audience, just you and the defendants and whomever has interest in seeing this case.

I pretty good at legal stuff even though I am not a lawyer (defended myself in federal court once... 

I suspect the above notice was never provided, meaning the tenant may sue you and the well known company as a co-defendant for the return of the deposit, or you may have a third party complaint against the well known company, if the well known company is not named as a defendant in the initial lawsuit.