These are the highest liability activities within real estate investing, so by using an operational LLC that doesn't hold your assets you can effectively limit your most precious assets.A general idea would be: good insurance > split properties in to compartmentalized protection (Series LLC or just LLCs) > operational LLC to separate highest liability activities > introduce anonymity of ownership.

.* The repairs are NOT financed, so require more funds out of your pocket, which again cripples your precious investment capital.

Incredibly enough the same people with the 2am toilet excuse are willing to give their time (which they deem so precious) to someone else.

If you can pay off a conventional loan just fine and the loan process would take less time than if you were to save the money yourself than id say go conventional to save your most precious resource TIME.

Hey BP, my name is John, im new to investing but I have some pretty good general knowledgeable on the subject (atleast I think) but not nearly enough.Its a pleasure and I look forward to gaining even more knowledge, t...

I thank you all in advance for I know your time is very precious.

Would having them call you save you precious time shopping around?

How can I stretch my precious resources to maximize investments?

So it is not really money you would loose if a claimant showed up, just your precious time.Your scenario 3, = "I manage to track down an heir and offer them a little extra cash on top of the back taxes..." is the most practical route.   

Give up your most precious resource gratis and " DROP A STEP BY STEP ORGANIZED PLAN OF ACTION TO ACHIEVE A NO MONEY & NO CREDIT TO A 100K PER MONTH PROPERTY WHOLESALING BUSINESS"those in glass houses...