You don't want to wait on a hoped-for settlement only to find out that you are blocked by a statute of limitations when you finally decide to bring a lawsuit.

I often break it down into the "five pillars" of protecting your assets.1st pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments - these simple steps will help you prevent lawsuits before they even occur.2nd pillar is a good insurance policy as that cover the majority of your exposure.

Have you ever had a guest try to claim a lawsuit on any of your properties?

We have narrowed our search 2-3+ bedroom units/or duplex either set up with a mother-in-law suite or some other form of detached living from the main house to allow us to afford downtown living.

It could be an ADU, a mother-in-law suite above the garage, or a walk-out basement with a little kitchenette.

There is the potential for lawsuits if the bottom unit can’t stand the kids running and jumping.

You need a management LLC to protect yourself from a lawsuit, the LLC would be sued and not you personally.

Also you an attorney might be able to write you a letter stating that he believes you are not responsible for an monetary fees and that if they file a lawsuit you will counterclaim.

You probably won't live for free, but would most likely would cut your living costs in half with renting the other side and living comfortably with your family.The other option would be to be a large single family house that has a mother-in-law suite attached or the ability to wall off the basement and make it a separate rentable unit, I've found lots of houses like that here that have worked for me. 

You can keep considering SFR's and the pro's those come with b/c many SFR's are out there with either:1) completely separate built-in mother-in-law suite (say like one of my BHH investors lived in the apartment above the garage) or,2) a detached unit on the same lot (I did BHH deal with a small 2nd house in the back yard and the two houses even had separate yards & driveways).