Sometimes just the threat of a lawsuit will get people to the table.

Establish your criteria (income, credit score, etc) and apply it evenly so you are not opening yourself to liability and a potential discrimination lawsuit. 

what's the cost of NOT hiring a PMC and dealing with vacancies, lawsuits from mistakes, etc.?

That being said, we had to start over and the contractor almost didn't get it done as a result of growing his business too fast and one poorly managed project snowballing into the next (Word on the street is that he has since skipped town and there are over 10 pending lawsuits.)Lastly, the contractor assumed that this property was on city sewer.

The reason I ask, many landlords I have talked to about SFR have recommended AGAINST installing swimming pools, or even buying REI properties which have pools, due to the liability... resident's kid (or some random trespassing kid) falls in the pool on the property you own, you may have a lawsuit.

At first I thought it would be a great idea to do a single family home with an in-law suite and I'd live in the in-law and rent by the room but it turns out the area I'm looking (suburbs) does not allow that per zoning. :( Interested in any other recommendations for me if I'd like to stay in the suburbs.

Doing this also protects me from lawsuits correct?

Basically to protect from lawsuits one creates a property management company as an LLC.

Look online for a law firm experienced in "quiet title" actions.Consult with them and ask if in your State it is needed in case of liens, law suits, etc. from the previous owner.

In the past, a very large majority of these lawsuits have not gone in favor of the Landlord or property Owner.