This also gives you some peace of mind to protect your tools, contractors tools, and help solve any theft related issues that may arise.

I'm not picturing this tenant changing air filters, are there other deterioration issues that you think might arise? 

When I worked in banking we occasionally had these issues arise, and it was simply an issue of a bank employee filling out a form and submitting it after accepting the deposit (NOTE:  that was well over a decade ago, so things may have changed slightly since then).  

The problem really arises when the downturn comes after either (a) people invested for appreciation, (b) they overleveraged to generate returns, or (c) both.  

For new investors, it's either not immediately feasible (leading to discouragement at they embark on their RE journey) or can be dangerous as newbs typically don't have the experience yet to properly assess potential risks / pitfalls that may arise.

A bailment arises when you come into possession of property that does not belong to you. 

Zero risk if you know and trust the title company/attorney and all parties in both transactions are fully committed.Money never leaves escrow.Problems arise when transaction 2 has issues and that possibility has not been properly addressed in advance. 

Unfortunately you can't live off equity.Cash generation, on the other hand, is critical to 1) keep food on the table, 2) enable you to borrow more funds, and 3) cover any unexpected expenses that invariably arise in life.

I also have seen a rise in defaults for hard money lenders.  

._____ Tenant attests that this service/assistance animal provides a necessary service/assistance specific to Tenant’s disability as documented by a qualified professional.Name of animal: ______________________________________________________________________Description of animal: ________________________________________________________ (type, breed, color, age)Veterinarian: _________________________________________________________________________Emergency Caretaker: __________________________________________________________________Tenant agrees to:1.Provide proper care for the animal in accordance with veterinary recommendations or ASPCA (American Society for the Prevention of Cruelty to Animals) guidelines.See www.aspca.org.2.Not to leave the animal unattended for any unreasonable periods of time.3.Adhere to local ordinances, including leash, vaccination, and tag/licensing, requirements.4.Clean up after the animal and dispose of animal waste properly and quickly.5.Not to leave animal food or water outside the dwelling, as it could attract other animals.6.Keep the animal from being noisy, aggressive, or from causing any annoyance or discomfort to others.7.Immediately remedy any complaints that arise from animal behavior.8.Immediately pay for any damage, loss, or expense caused to others by the animal.9.Provide animal with regular health care, to include inoculations as recommended by a veterinarian.10.Spay or neuter the animal when it becomes of age to do so.11.Arrange for an emergency caretaker for the animal.12.Maintain adequate insurance to cover claims resulting from damages or injury caused by pet.Tenant agrees to indemnify, hold harmless and defend Landlord against all liability, judgments, expenses (including attorney fees), or claims by third parties for any injury to any person or damage to property caused by Tenant’s animal.Landlord reserves the right to revoke permission to keep the animal should Tenant break this agreement or provide false or misleading information.Landord ___________________________________________________Date __________Tenant______________________________________________________Date __________.