For example: Someone decides to sue me because I injured them during a flag football game (this is completely fictitious FYI).In this scenario, my worry is that someone might try to sue me, realize that I own multiple real estate properties, and try to essentially drain all of my money and force me to sell said properties.What is the best way to mitigate this?

Like others have pointed out, if she was really all worried about it, she could have easily mitigated her damages with a cooler and a bit of ice. 

I thought it could be mitigated by not getting any dividends from LLC, but that doesn't appear to be the case.I will start another topic to ask questions about our available options.

To mitigate this I did a rehab budget based on J Scott's book and worked in an extra 30% for unexpected cost. - if I find that I am overwhelmed managing the property, I have factored in 10% for property management, but would like to take a shot at self management. - I uses other sold 3/2 manufactured homes in the same neighborhood for my ARV then added in a 5k buffer.- Besides the forced appreciation from the rehab I dont factor in any appreciation in my calculations. - Also worked in the budget is labor cost for the rehab, if I do the work I will save money and increase my CoC, but because am currently employed at 60hrs a week I will likely hire out contractors. - I feel that 10% CapEx/maintenance should cover any damages (I have extra capital set aside for pop up expenses)-I view this home as a stepping stone to a larger portfolio and a good way to learn about the business with out being fully invested in a large multifamily or extensive rehab that requires roof, foundation ect@Bill F. - my ideal tenant is a family that wants the advantages the school district offers but cant afford a 40k down payment on a 200k home.

It comes down to identifying those risks before you purchase and have a plan to mitigate them.

Go into contract as soon as you can even before you close the sale so you can close your purchase even during the 45 day period if possible to mitigate risk.It's easy to think of your reinvestment goals as a two part rule to defer all tax.  

The first time they pay late you will need to give them notice to non renew to mitigate your losses.

Plus no HOA fees (mitigates the maintenance you'll have), and you get to keep your low property tax base (thanks prop 13 :)  Sh!

So if they did a 1031 into a nice FL rental and used it as rental for 2 years and then moved in and lived in it for 3 years they could sell and take 3/5ths of the gain tax free up to the limits of sec 121 after they recapture depreciation.It's not the total windfall it was in the early 2000s but it's still a great opportunity to mitigate some of the pent up gain from 1031ing over the years as a retirement strategy.

Risk mitigation (other topics than transferring individual risk from you personally to the entity)2.