The whole idea of an LLC is to prevent future damages.The doctor said I could smoke cigarettes because most people don't get cancer from it.99% of the people asking about LLCs in the forums here do not need and can not form an LLC to carry a property in because they are using residential loans and don't have an LLC with 2 years of tax returns.

This is where you can lean on a reliable agent to prevent you from buying bad deals but I would also make sure you do enough research before making offers. 

I feel maintaining your properties correctly and being decent to your tenants is the best preventative measure we as landlords can take next to LLCs, insurance, and umbrella policies.

I would happily spend $2 to save $1 if it prevents the extorsion.  

With an attorney handling the eviction, you can not only ensure proper handling but also take advantage settlement agreements to prevent having to restart the process if the tenant were to default again and get automatic final judgment when the tenant defaults on the settlement agreement. 

I’m concerned that holding this note may prevent me from closing on future deals due to DTI ratio.

Maybe you need to upgrade the properties to prevent some of the headaches?

But again, make sure none of them will prevent financing.

Example: the intention of Passive Activity Limitation (PAL) rules is to prevent high-income earners from reducing their taxes by merely investing money into real estate.

BP prevents me from putting their email in my response, but the email is in your confirmation email for the conference.