This is business and in business do what's best for you and protect your investment to the fullest.

However, a 10-second search on Google pulled up the following: https://oregonrealtors.org/protect/selling-tenant-occupied-homes/

We have a 12 page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

We have a vested interest in protecting our clients assets and don't spend money frivolously. 

because tenants are a powerful lobby group and they can and do change the laws to protect themselves....

I have an option contract to protect me from the owner selling after I start renovations.

Has anyone purchased or sold a property with DPS (Downgradient Property Status) filed on it, because of environmental contamination from an upstream property?

A heads up - before you send out your deposit accounting read the CA laws very carefully -  thankfully laws are changing to protect tenants from over charges from the security deposit - but this means there are very strict laws regarding this. 

The best way to protect against these types of suits is to take care of your properties and your tenants so there is no reason to sue you.

We've already agreed on rates, and I'm going to ensure all the paperwork protects me just like it would any other lender (proper contracts, personal guarantee, etc)The part I'm unsure of is what type of entity it should be under, just a regular LLC?