You will have to take them to small claims court to collect if they refuse to pay.

@Aimee Knier Here in Portland you’d probably land yourself straight into a lawsuit that would claim you threatened the tenant using intimidation and fear mongering.

One of the funds I buy from does this quite regularly. 

Im regularly looking at houses but some help would be great. 

Do I just get regular home-owners insurance, or is there a special type of insurance I get instead of home-owners insurance?

@William Thorn just happened to me 10 days ago, 3 days before I was ready to close on a piece of apartment land the neighbor filed a lis pendes and law suit claiming adverse possession rights.

Is he required by law to claim the interest when filing his taxes?

The title to trust property may be vested in one or more trustees, but shall not be subject to claims against the trustee which are unrelated to the statutory trust. 

As a solar salesperson I generally avoid wasting time talking to tenants because they can't sign a contract for solar on a house they don't own, and usually the owner can't claim the tax credit on a rental property. 

And lastly , Maybe consider partnering up with local wholesalers and consider 18% return before rehab( and yes those can still be found) , and find a hard money lender that might lend you 80% and 100% Rehab, . 1 year lend and then refinance and get Regular loan , I know you might have to pay the Interest and might take a cut, but is the name of the game, and luckily you might get to 10 to 12%..