Try smaller numbers less than 5% dispute. 

You can dispute the legality of their forms and if proved false, you can use that to either not renew/ or not continue their lease.

* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?

My "typical" loan package includes a note, mortgage, personal guaranty(s), affidavit, and a resolution (for the entity to borrow the money). 

Resolving Disputes (Court or Arbitrator)?

Setting up an LLC has an up-front cost, additional steps to maintain protections, and requires a separate tax return every year which costs more.Here's the truth: the vast majority of all lawsuits against private Landlords are security deposit disputes or minor injuries that would be easily covered by your standard liability policy.

Security deposit disputes.

When the judge rules on the summary judgment motion, he/she has to explain every disputed point and how the ruling was made.

If you end up in a legal dispute and your contract isn't well written, it is bad news.

No one can dispute California's insane real estate appreciation over time, though I would wager that is heavily concentrated in the Bay and LA metros.