I often break it down into the "five pillars" of protecting your assets.The first 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.The second pillar is a good insurance policy as that cover the majority of your exposure.

@Alexander Grullon Quitting a full time job to do real estate is a major decision and needs to be done responsibly.

Really they take on majority of the risks associated with a lawsuit.  

I am in the process of buying land outside of a major Texas city.

That knowledge will be valuable as you step up to the big leagues.

Buying a run-down junker may look good on paper for cash-flow purposes but it can eat your lunch when a major system fails and has to be replaced.

They are underinsured believing that a n llc is some magic shield.If you go the llc route then sit down with the proper professionals and understand exactly what you need to do to make it a viable llc -the ongoing work it entails-and not one of the majority of slap-dashed llc’s that do nothing but give people a false sense of security and accomplishment.I do not have my buildings in an LLC.

To be honest the majority of the people that live in these areas are nice hard working people that just want to live a nice peaceful life like anyone else. 

Thank you all for the responses,Matthew, looking at a major rehab in West Woodlawn.

That being said, be careful because if things went south, it could result in a major penalty Might have been better to post a hypothetical question and a faux story to get the answerFHA loans are owner occupied, 5% down also likely owner occupied - read the contract Once you have 20%-25% equity in, you can refinance and go conventional I can't recommend either way for you, but I can say others have done itOnce your loan is conventional, I'd say you've got very little to worry about - the choice is yours