Still worth it of course, but the main drawback for me is the extra hassles of managing a C-corp vs. a sole proprietorship or LLC, e.g. double taxation on FICA and Medicare, paying workers comp tax, and having to buy general liability insurance for lawsuit protection.  

You're less likely to see a frivolous law suit in case someone wants to say they slipped on ice in front of your property.We also had a problem with a domestic violence issue last year and we had video to give the police.

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.

* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?

Even if you're a single-member LLC, it won't protect you from lawsuits or other legal action if something goes wrong since you were negligent.

Account Closed acting in that way would not only most likely put the Operator out of business, it would also open them up to major lawsuits as the PPM spells out that all passive investors share in losses or returns proportionately as Jonathan pointed out.

I'm in the process of buying a new construction with an JADU (attached In-Law suite) rental.

Typically you'll see lawsuits being executed against the PM for poor performance.

The long-term goal is possession and ownership.What if you file your ejectment lawsuit during tax cert period and the owner wants to redeem?

What happens with an outside law suit?