For the passive investors/owners, who have a management company to manage their properties and do all the work, an LLC would work well if an accident like the example above occurs.

The fire was supposedly an accident, No, I'm referring to the sudden halt in rent payments. 8 years is definitely a long time and just when you thought you can trust a person hell's kitchen breaks loose that even Gordon Ramsey can't explain what the hell happened.

Zestimates have been accurate, but only by accident.

The emergency fund covers you for the unexpected things in life - It ensures you, and your family, can survive comfortable when things go south. 

If you max out your LTV with the entirety of your savings for the down payment, you won't have any extra for any possible repairs/maintenance that may pop up unexpectedly.

When I first started looking at properties here, an agent, who I met quite by accident, showed me two properties she said would work for investments.  

However, this time, we gave ourselves one week due diligence, had an unexpected trip that shortened our time more and then began to question our understanding of the 1% rule and if it really applies to duplexes - which thanks to all of you and others locally - we learned it does not.

If for some reason they move out unexpected, the housing authority still pays you their portion until the relationship is terminated.

The likelihood of those events occurring may be slim but because they're possible you deserve to be compensated for taking that risk and having a reserve to cover the unexpected.   2 cents.

There will always be unexpected surprises and if those surprises are bad you want to be able to take care of it on your own and the only way to that if the property is out of state is to take a trip there.