I’ve owned several businesses, dozens of properties, hundreds of employees and not a hint of any frivolous lawsuits.

A good way to cause maintenance to go up is lawsuits and attorney's fees.

**All this to say that there was a class action lawsuit (by owners and PMs) initiated sometime late last year that I believe is still in process.

Be careful and be aware that there are groups out there that actively try to setup landlords for lawsuits in this area...

If you are not familiar with Garrett Sutton, he is one of Robert kiyosaki "Rich Dad" advisors  He advises everyone to start an out of state corporation, Nevada or Wyoming to avoid damaging lawsuits going after your assets. 

You don't want to be in a lawsuit for no reason.

If the HOA has a large lawsuit, the subject has health and safety code violations, the HOA doesn't have adequate Master Insurance Policy or no reserves you won't get a traditional loan.

That being said, another strategy that I am focusing on myself and with my house hacking clients is to purchase a SFH that has a mother-in-law suite.

I've had tenants die, tenants disappear, buildings burn down, house condemned, floods, freezes, drug dens, lawsuits, pet bites, HOA bankruptcies, squatters, evictions, failed partnerships, deadbeat contractors, etc.

There are also other possible encumbrances that you may be responsible to pay off including past due taxes, past due utilities, other encumbrances including lawsuit liens, child support liens etc.