It's extremely rare for a lawsuit to happen at all.

I was drawn to this deal because it aligns with my strategy of combining immediate rental income with long-term development potential.

That's an extremely rare opportunity though. 

Lenders will rarely approve a loan knowing the down payment funds is a loan.

Credit HistoryMany companies use credit summaries, but we find these rarely tell the whole credit story.

Second, I have experience with hundreds of pet owners and it is very rare (in my market) for pets to cause more damage than the deposit will cover. 

Although still rare, some of these duplexes are now coming with impact windows, which further lowers your insurance and increases storm protection, so this may be something else to look into.

Combine both strategies. 1031 into a small multifamily where you live.

The non-title holding ex-spouse can ask the lender to release them from the Note, but it's rarely given in my experience.

I will say I rarely see water softeners in the properties we buy or hear any investors recommend installing them.