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. 

Typically reno scope/rents/insurance/etc. are very market-specific, so building your analysis muscle for your chosen market is important so that you go in with the best possible chance to make an educated choice on purchasing.

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

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

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.

Here's what ME lease agreement stipulates for pests:(F) Pest control, after the first ten (10) days of the Term of this Lease, shall be the sole responsibility of the Tenant, including, without limitation, prevention and remediation.

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