Plus there are several companies that prey on this fear to sell what in my opinion is unneeded "protection" from this bogeyman. 

One source of cities to avoid is Neighborhood Scout's 100 most dangerous cities.Disaster Risk - Some parts of the country suffer frequent natural disasters.

Look at your risk vs. reward and what safety nets you can put in place to protect yourself (I.e. tenants with garnish-able wages, increased security deposits, etc.).

But are you making sure you can quit claim the deed into a llc to protect yourself? 

We have a 12 page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

An LLC does not give you any tax advantages, more liability protection than anything, however, in a loan scenario, you are not on title and therefore do not have any liability exposure to my knowledge.

It's not a complicated process and the entire contract can be put together for around $1,000 or less.More importantly, make sure you are protected.

I must protect myself an my business."

That changed after I had a tenant, after the tragic death of his live in girlfriend, suffered a bout of depression so severe that when I visited him, not only was the lawn not mowed for over six months, but looks like he didn't have a haircut, shave, or bath for that long.

We have a 12 page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.