You get insurance on your stuff and your actions (renters insurance) and he gets insurance on his property and his actions (property insurance for non-owner occupied residential).

I had a lot of tire-kickers but I keep marketing and got someone serious and took action. 

Many are still working on that perfect plan and not taking action!  

If they can't find anything, it's unlikely they are going to pursue the action. 

Keep reading on BP and take action!

@Michael Ford Congrats on taking action and getting your first property under contract.Have you listed it in the Exclusive BiggerPockets Pro Forum?

Here are a few things that are important to me (no particular order):The understanding that while you are the property manager you will be managed by meProactive instead of always reactiveTimely financial reporting, timely response to tenant concerns, timely action when tenants break the rules, timely feedback to meBe known and seen by the tenants (do property inspections, find out what is going on before its too late)Be firm but fairHave solid referencesOwn real estate investments (this is very important to me)Expert in fair housing, eviction process, marketing, tenant screening and selection, etc.Have an establish process and vendor pool for a large variety of repairs, be responsive to repair request (doesn't mean all request are granted)Think of it as a partnership (we make money together)Have staff that can step in (can't have a single point of failure)I am sure there are others but this is off the top of my head.

You've taken action and putting yourself out there. 

It had 2 foreclosure actions on it - one in 2009 and one in 2010 - both for sheriff sale auctions and both were cancelled. 

I don't want to lose good tenants because I'm not taking action so just wondering what options I have and if legally I can stop this behavior.