If you fail to follow the rules, you may open your personal assets to a lawsuit.

IF they are reviewing FC lists, the 1st lienholder is aware as they are also part of the lawsuit for the Foreclosure as anybody with an interest in the party is named.2. 

I often break it down into the "five pillars" of protecting your assets.1st pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments - these simple steps will help you prevent lawsuits before they even occur.2nd pillar is a good insurance policy as that cover the majority of your exposure.

A lot of Phoenix investors are house hacking with a casita/in law suite.

Who’s building or looking into building ADU’s ?

@Paul BurnsHave you considered house hacking a single family home with an in law suite on AirBNB, HomeAway and Booking.

Think about it, if you deny someone because an eviction and they happen to be a minority, then allow someone else who is a non-minority rent with an eviction, that is grounds for a lawsuit, to which you would lose.

But you have to write on the Notice to Quit and the lawsuit that all monies will be for use and occupancy. 

Pay for a good lease now or pay the cost of lawsuits, legal fees, and attorney fees later. 

That tenant was clearly not mentally stable and her lawsuit was so frivolous that it was thrown out and she was served with an order of eviction and ordered to pay the attorney's fees.