That is wall of defense 1, LLC is wall 2. 

Insurance is your first fence line of defense, an entity can be second layer.

You can also get an umbrella policy for yourself, which I think is a good idea as it gives you a second line of defense before you start losing assets. 

Assuming tenant doesn't lodge a defense or have an attorney, judge orders eviction but stays the order for 30 days.4.1 If tenant says they need more time to get an attorney, 2-4 weeks until the next court date.4.2 If tenant has an attorney, doom and gloom, this could be BAD.5.

Inexperienced investors tend to (1) get exited about deals without having the experience, knowledge or ability to properly determine if indeed the deal is good, bad or mediocre, (2) take what the seller says as gospel not realizing most sellers will exaggerate, lie and or withhold vital information to get what they want, (3) engage people who will provide opinions for free rather than pay a competent professional, (4) get emotionally caught up in the deal and very defensive when receiving an opinion or information that doesn’t support their dream, and rationalize that more experienced people who point out flaws are “jealous, negative or haters”.Btw, no one can provide any knowledgeable answers to your questions without first analyzing the deal, your ability to come up with a down payment, your credit capacity and banking relations, if you have a track record, your experience with similar property ownership, etc.

if that's the case, having an extra 20% in the deal from either buying low or adding value will be a big help in weathering the storm. this will make it that even if you ahve to sell, you could still earn some money or break even. additionally, with a multi it's generally more of a cash flow play, and if that's the case an economic dip won't be too big of a deal if you are cash flowing an acceptable amount with a buffer included. lastly if you get into a deal and have extra equity, you could bring in another investor in the future and "sell" the extra equity to them, while still staying in the deal. there are other options, like subject too's and rent to owns that may work here but for me buy low is the best defense. 

I say this as some sort of defense for my relative because I think they had a real interest in the upkeep of the neighborhood and not just money. 

Make sure it comes across as an honest mistake and not them purposely misleading you....otherwise they will immediately get on the defensive and you'll have a much harder time negotiating a price cut.

It only costs a few hundred per year to get a second line of insurance defense. 

Look, no need to get defensive.