Her deposit covered most of her damages.

If she is unable to have a civilized conversation then maybe you need to put some showing notes in your listings to the Agents to just beware of the neighbor who suffers from some kind of mental health issue <-- not too sure if you are allowed to do this since technically I believe this is a protected class but I would maybe consult with your local real estate board.

I believe we are late in the real estate cycle and there might be a drop in housing prices (which I am ok with), and in such a scenario I would like the rental income to be able to at least cover the mortgage payments and would be ok with paying for other costs out of pocket. 

If so, what gap(s) would the attorney fill that the realtor and property manager couldn't cover?

I believe we are late in the real estate cycle and there might be a drop in housing prices (which I am ok with), and in such a scenario I would like the rental income to be able to at least cover the mortgage payments and would be ok with paying for other costs out of pocket.

The parts were covered under warranty but the labor was not.

I know US LI covers more than 4 properties I tried calling up few companies but there was no luck.

I just use the reserve to cover costs and replace what went out.

Don't tap into the cash flow AT ALL until you have covered 140% of all your expenses in buy and hold real estate.

He will be purchasing a triplex, allowing him to live for free in one unit while renting out the other two to cover his mortgage.