You may also be asked to fund an interest reserve at the time of closing which mitigates default risk for the lender.Hopefully you find helpful.

Hey guys. I have a question. I’m buying a house and assuming a VA loan for it from a veteran. It’s not a subto. How do I protect my assets and potential liabilities? I know I can’t use an llc for it. Besides buying pr...

I might look to practical things that can be done to mitigate those risks such as adding a sprinkler system to that basement unit or something like that.

There's now way for you to mitigate that risk.

That is the key to real estate - understanding the risk and how to mitigate it.

This is why @Logan Allec was bringing up Form 2210: it allows you to mitigate the penalty based on timing of income and payments, but it is not easy to complete. 

If you're experienced or high volume, this can be mitigated. 

For me personally, I find a tremendous amount of value in going through programs that help me learn at a much faster rate then what I could on my own as well as help me mitigate risk/self doubt.

They want stellar performance on: 1) listing, 2) screening, 3) leasing, 4) inspections, 5) maintenance, 6) lease enforcement, 7) communication, 8) liability mitigation, 9) tenant management, 10) market trends, 11) technology, 12) move-in / move-out process, 13) handling/disposing of tenant property, 14) resolving disputes, 15) vendor relationship and management, etc. 

One key to mitigating that would be to go ahead and start your 1301 exchange.