This not only applies to potential lawsuits or other similar events, but also applies to the financing.

In Canada you are limited  to options on how to own property and protect your personal assets from lawsuits resulting from your running a rental business. 

Purchase price: $319,900 Cash invested: $32,000 2 bedroom mother in law suite What made you interested in investing in this type of deal?

If it has, then you would need to hire an attorney to start a lawsuit to confirm your tax sale and quiet the title.

For starters, you want to make sure what you are buying is free from any potential lawsuits where you could lose, but secondly, if you ever go to sell your house, if you weren't able to get title insurance there is a good chance any future buyers wont either.

If you put everything in the same LLC, it means any lawsuit against the LLC can go after other assets within the LLC.

So if you are staying in your area, we just purchase a single family home (SFH) with the 5% down or maybe a SFH with an Accessory Dwelling Unit (ADU...or otherwise known as a Mother-in-Law suite or garage apartment type of setup). 

There are at least 8 other investors owed money and 6 went together on a lawsuit trying to get their money back.

If they don't have their own entrances to outside, that may avoid the zoning requirement by making them more of a "mother in law suite".

Sounds like a lawsuit waiting to happen.