I think on larger MF loans there are NO pgs as no one really has the liquidity to make a 20 mil loan good anyway.. the real risk of GP is of failure and then investor wrath and law suit.. 

I heard today that this structure is useless and still can be pierced in the occurrence of a lawsuit.

Based on the collection of answers provided thus far, it seems the best way to have the most protection of my assets in case of a lawsuit (except in cases where the corporate veil is pierced) is to form an LLC to provide that layer protection, get liability insurance and an umbrella policy.

It is highly recommended as it can provide financial protection for landlords in case of various risks such as property damage, loss of rental income, and liability.When shopping for landlord rental property insurance, you should look for coverage that includes:Property damage: This covers the cost of repairing or rebuilding the rental property in case of fire, storm damage, vandalism, etc.Loss of rental income: This covers the loss of rental income if the property is unable to be rented out due to a covered loss.Liability: This covers the costs of defending and settling any lawsuits arising from a tenant's injury or property damage on the rental property.Medical payments: This covers the costs of medical treatment for tenants or guests who are injured on the property.Make sure to also compare policy limits, deductibles, and exclusions for each type of coverage when choosing a landlord rental property insurance policy.

Features include country kitchen, in-law suite.

She may know the answer and just wants to see if you know, don't risk that it isn't worth the lawsuit.

I bought a home that has an in-law suite and I am living in the one bedroom one bathroom while a family is living in the main home.

I was going to say  " send them a demand letter with the agreement they signed with you" ( just for the sake of it, or  although I will also not advise to pursue a law suit for that... or just write a sarcastic congratulation under comments on the FB pic..

I like the comment that as soon as they mention the word sue or lawsuit, I cease communication and have them go through the attorney. 

It’s a property manager’s responsibility to understand landlord-tenant laws and fair housing laws, which can protect you from potential lawsuits.6 – You’re not a handyman.