I *always* look up potential tenants on the online county lawsuit databases because I always find more info that way than any screening company I have tried has.

Most states have statutes of limitations on lawsuits based on the last payment you made.

I also am not sure what is protected from law suit and what is not.

A Lis Pendens basically is a Law Suit filed by the Lender against a homeowner in default of their mortgage, usually after the homeowner has fallen 90 to 120 days behind.

If you let her slide on rent but don't let another tenant I could see a "professional tenant" filing a discrimination lawsuit.

I already have a small IRA account set up with Equity Trust but I just read somewhere that they are involved with some kind of lawsuit ala Bernie Madoff and Intrust is also involved?

You lose the property (how about a lawsuit having nothing to do with your property), your out $100k.  

When you file for the eviction with your attorney, you simply add the late fees to the lawsuit. 

They will waste all profits on evictions, vacancies, law suits, and their lack of ability to adequately perform property management, a necessary skill in our industry.

Insurance companies are some of the most profitable businesses in the country and really should only be used for things you couldn't afford to pay for otherwise (such as the total loss of a property or a liability lawsuit).