-The liability insurance acts as a shield between owners and tenants - creating a legal barrier that doesn't typically exist in rental properties since tenant agreement with with HomeRoom and not the owner.

I consulted with a real estate lawyer a few times this year who said it's very hard to sue for negligence and they advised against taking legal action, especially since the property manager at least followed through on the eviction and repairs.I've now asked the property management company to apply a $4k credit for all the challenges I've had working with them.

If you don't sign the contract and hire that agent, then they legally shouldn't be working for you.

Quote from @Aaron Zimmerman: I would look for other ways to legally reduce income such as cost segregation studies.

I have done extensive research in the risks, how to structure such deals to mitigate those risks as effectively as possible, and legal considerations of each strategy. 

Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away.

- FYI: it's only illegal to try to rent it out, the property owner can usually legally live in a nonconforming basement unit.If you do all this you may still negatively cashflow each month, so make sure your income can cover and/or your cash reserves.If you do this successfully, you will learn more in 1-2 years than you would reading here on BP for 5+ years:)Good luck:)

Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away.

Doing so ensures compliance with your lease agreement and avoids potential legal disputes down the line.In conclusion, adding your property manager to your insurance policy as an additional insured is a crucial step in protecting yourself and your property manager.

I ultimately invested $65 cash, $5k in legal fees, and $9.7k in operational expenses while owning the home, and walked away with $17.3k after a judgement.What made you interested in investing in this type of deal?