And it's also my understanding that children who develop issues from lead exposure can  potentially sue the owners, even  past owners, years down the road. 

It hedges the bank's exposure. 

all,thank you for your time...what happens to our legal risk exposure if we payoff one of the rentals.  

It's difficult to find because using the purchase price for the basis of the loan in the first 12 months helps to limit the exposure of the lender.

Seems there are some real disagreements on best approach, though all agree with insurance as a base protector, many stating that until you hit a certain threshold portfolio size/equity LLCs may be overkill.Then there is risk of calling loans due based on quit claims at close, restrictions on warranty deeds, and additional risk exposure by having title transfers.  

I was not in the mortgage industry long enough to have exposure to multimillion dollar homes and dealing with jumbo loans.  

You can also try a sandwich lease with an option to purchase - another way to limit your exposure in the deal and inject minimal cash.There are many ways to work with limited capital and no bank financing.

They don't want that kind of exposure out there, because there may be other properties that have had this happen as well

Do this while networking with investors here on BP and out in your community, and you end up with exposure to deals while getting paid to develop your skill set.

This will limit your risk and exposure while allowing you to build your knowledge base. typically, private/hard money lenders will finance up to 90% of the ARV (after repair value) of a flip so you could potentially looks at properties between 40-60k.