In our case, the complaint was 100% frivolous - we evicted a tenant for non-payment of rent, but since she was in multiple protected classes, she claimed discrimination.Here is how the process went for us (we're in OH, so YMMV):We contacted the attorney who'd filed for eviction, as we self-manage.

Hello, my realtor found a tenant for me who appeared to have high income and great  references. come to find out that all are falsified. she stated she worked for a government agency and that was false, reason I know is I found her on facebook and she is self employed - WITH BAD REVIEWS AND ONE OF THEM WANTS TO SERVE HER - YIKES,  I can also see who she used as references, which are her FACEBOOK FRIENDS -NOT HER EMPLOYER. 

Wondering how effective that is.

I want to help but I'm in California and we actually have a Flipping Academy but because you are there you have to be really self motivated.

I’m sure it can be done better and more effectively but I’m just unsure how.

Also, get in the habit to budget for property management (8-10%)  even if you're self managing. 

@Fernando CardonaThere are a couple of items to think of here.You might be considered in the business of issuing money.The pro is that the interest on the loans you borrow from will be deductible against your income.The negative is that your income might now be subject to self-employment tax.You should think of the money you earn from a post-tax perspective.if you are borrowing at 6% and lending out at 10% - you are only making 2% if you are near the 50% tax rate(fed income tax, self-employment tax and state income tax).Depending on how diversified you are - one person not paying you back can make you lose all your gains/income

It's important that you understand how your expenses and taxes effect your bottom line, so keep on doing what you are doing, but have a CPA verify that you are on the right track.

This leaves you a buffer..... and time to fly out and inspect it your self.

I have a current 457B plan which I am permitted to self-direct through a brokerage account at Charles Schwab.