Best to consult an accountant with cross border real estate and business expertise to get a full understanding of how you should hold (own) any Canadian properties to best fit your situation and mitigate tax liabilities.DispositionAs a non-resident, when you sell a property, you must notify the Canadian Revenue Agency (CRA) pretty much immediately (something like 7-10 days if memory serves) to obtain a certificate of compliance.  

Protect your investment and fix the water and foundation problems.

Will that really protect myself from getting the deal stole from under me? 

There is some debate as to what is the best way to purchase the property to protect your personal assets.  

Yes, there is insurance coverage to help mitigate that, but that does not give nearly the amount of protection that an LLC provides.

Okay Darren I appreciate your research and expertise once again. 

They would not be considered a legitimate tenant in the eyes of the lender as the lease (Assuming you have one) is between the tenant and you, not the borrower so, the tenant would not be protected with any of the "Protecting tenants at Foreclosure" rules.

How do you protect /prepare yourself from such a lawsuit besides insurance?

This strategy should also protect the downside a little better by offering a larger pool of buyers in the future.The way we try to claw back the cahsflow/equity is by targeting short sales or wholesale deals that may require rehab but are priced well below market value.We are not reinventing the wheel, simply implementing a tried and tested method.

A security guard is a person who is employed in various places to protect public or private properties as well as people.