Seasoned investors typically have contingencies in place and work to diversify their portfolios to mitigate these risks.4.

The background check is supposed to identify the amount of risk, then you determine whether you can mitigate that risk or not.

@Emeka Okeke, while it can be debated, in my opinion, by far, one of the more simplistic ways to take action and learn the ropes of real estate investing, all while mitigating risk, is to house hack your first deal.

It will help mitigate some of the risks that you are hesitant about.

Either starting with a multi-unit or house hacking to mitigate the payment.

Primarily, portfolios consisting of stocks, ETFs, and/or mutual funds.There are a few ways to mitigate the risk with this sort of LOC.

Are there strategies or steps to mitigate the risk of new regulations?

I have done extensive research in the risks, how to structure such deals to mitigate those risks as effectively as possible, and legal considerations of each strategy. 

It couldn't hurt to call a couple attorneys right away to see what they say in terms of cost and suggestions for dealing with this quickly.In terms of mitigating any legal issues with your tenant be sure you are documenting every conversation you have had with the HOA in terms of asking them to make the necessary repairs.

I offered to buy the property from the $28B foreign company which kept them from having to tear down the buildings to mitigate the vagrant problem and also from their obligation to pay the rail road for the long term lease.