When i questioned him on the price change without even so much as speaking with me he became defensive and stated that he was already much lower than the agreed upon 75k originally.i responded that i would never have agreed to the higher purchase price originally had he not been financing the place in the first place.

Courts have already held that a claim of "entrapment" is not a sufficient defense.

The umbrella policy is 2nd layer of defense for a landlord, they are relatively inexpensive and they will cover all of the properties you own.

But for you and any landlord, this is a situation in which a strong legal lease agreement, and an understanding of your local small claims court system is the best defense.

What I mean by that is a good offense is a good defense. 

@Sean Whiteman, The Rioprop decision is in the nature of an affirmative defense.

There is a big difference between playing offense and playing defense.

The example has a woman who is a Widower and lives in a 3 Bedroom regulated apt, but was not asked to down size after her family reduced in size.In defense, however, I would ask how often does this happen?

Mind you, it also takes a somewhat sophiscated borrower and savvy defense attorney to decipher these laws and use it as a defense.  

If they complained you could move them back.That said good insurance and taking good care of your tenants are first lines of defense.