Find a home with a mother in law suit or additional dwelling unit that you live in.

I don't like being the proving ground, and certainly don't want a call back or law suit because I installed some product that is now out of business and was a failure. 

Being hit with a $7.2MM lawsuit, frivolous or not, would be an awful lot to deal with.

One thing you can do to help investors find properties to househack is search for properties listed as single family homes but have a guest suite or in law suite that an investor can rent out.

On the lower end (400k) you could get a 2 bedroom with a studio in-law suite and if you could live in the studio and rent the 2 bedroom then this would be a great idea! 

That means that the duty is acknowledged by the courts in lawsuits that have been decided and published.  

So, if someone sues your LLC because they got hurt at your rental, then your personal assets should be safe from that lawsuit, so long as you follow standard LLC guidelines.  

Do you believe the tenants will defend you against a 3 million lawsuit if their dogs bite somebody?  

All that equity tied up in each property is a massive liability because a properly crafted lawsuit can gain access to all of it.Debt/Leverage is not a problem as long as it's covered by the operating income with enough buffer to weather a bad market. 

Misinformation could lead to a lawsuit.