Lend it out to a investor and it will be protected when the real estate markets crash.

My mentor (who does lots of wholesale deals through realtors) made it clear to me that I need to be sure to have a lot of exit clauses on my contract that will serve protect my assets/liabilities (my home, car, etc) in the event that I get sued.

@Sara Taslitt Ask lots of questions about protected classes and "testers".There are lots of ways to get snagged in a sting, where the state employs testers to try to trip you up. 

@Brett Hearn Here in Canada we don't have legislation similar to Dodd-Frank, but I do take some of the consumer protection steps that are recommended in that act.

For example at what stage of your life and or what financial position you are in does the cost make sense to protect your families assets?

Leveraging your expertise, I'd like to understand how you approach the situation I'm about to describe.Long Term Goal: Build RE portfolios using a buy-and-hold strategy by building up 40 units in the next 6 years.Situation: Small family owns their first single-family home which was purchased 2 years ago.Purchase Price: $320,000 (FHA, minimum down)Oustanding Balance: $300,000Appraised Value: $370,000 Mortgage: $1,950Est Rental: $2,300 (no expenses considered)Considerations:The basement may have been finished without permits, professional plumber, or electricianThe yard is large and potentially hard to maintainAn additional $2,000 is needed to prepare for rental or $10,000 in renovations before selling Therefore: What would you do as a starting investor in order to reach the goal stated?

Constitution rights to protect you

This is different than being an “additional insured” which in some instances may offer you additional protection, but not likely in your situation....if he can add you as an Additional Insured, great....if not sweat it.

Working in Law Enforcement is not a protected class, unless laws are different in your state.Even if it is, the HOA being mean doesn't cross the threshold of illegal discrimination. 

I assume it is more for liability protection against the individual ?