To combat our legal risk, we put a high cap on the liability insurance of each property, and put an umbrella policy in place.

You have to have the exit strategy nailed down before jumping in and I think too many people get started assuming they have an exit strategy, because the people make it seem like you just go to the bank and they re-finance your house.

@Kristina Heimstaedt hit the nail on the head and linked to an amazing blog. 

Been there, done that, closed that door, then nailed it shut. - Where is the risk for the folks buying?

Nailed it.

and then a nailer or hammer and pin nails to reattach shoe molding.

For us it was nailing down the area and numbers.

In fact you hit the nail on the head with the drywall scenario, because he did drywall a few walls and ceiling and it took days.

A year into this whole process the tenant, who still had not paid a dime, fought tooth and nail to retain her right to the property.

@Steve Vaughan probably hit the nail on the head.