However, if not adequately addressed you will become very familiar with 'Legal Arguments' !!

I'm not an attorney so I can't give legal advice but every RE attorney I've met says to, at a minimum, place your properties into an LLC.Your second safety net should be adequate property insurance with liability.

So they have to have some assurance you're going to get the place fixed up and raise it's value to $50k to adequately cover their loan.

@William Dorough Your first line of defense is to carry adequate insurance on your properties.

Although I would argue that Wave is not an adequate software for rental property management, as it's too limited to do the needed entries efficiently.

Make sure the HOA has adequate reserve, or a special assessment is not on the horizon.Is the property located in a flood zone?

That coupled with an umbrella policy should have you adequately protected.  

To answer your question, you can start taking money out when you are done growing and have an adequate reserve fund for unexpected and expected capital expenditures/operating funds.

One of the most effective ways to mitigate your risk if you ever decided to allow someone to operate this type of business out of your rental is to, like @Gail K. stated, make sure they are licensed to manage and adequately take care of the individuals they are caring for. 

The property makes REI sense or it doesn't (assuming adequate due diligence including the neighborhood and City issues )