And going a step further, how do you feel about paying the higher tax's when the city looses a $17million dollar liability lawsuit because 3 people died in a slum-lord property the city official didn't find, and the family of the tenants sue saying since the city official's job is to find slum-lord properties like there Sherlock Homes, and didn't, and people died, it's the cities liability.

Although it's technically a single family home, it has an attached mother-in-law suite with private entrance so the house functions like a duplex.

Buildings with structural litigation / lawsuits against the builder, particularly those without a definite dollar amount to fix, are extremely hard to finance. 

Sounds like you need to find a multi family property to live in and rent out, or something with a finished basement or in-law suite.

You can also look for a duplex or something with an in law suite. 

Having been recently threatened w/ a (admittedly frivolous) lawsuit, I sleep better at night knowing this nest-egg is judgment-proof.My passive income is probably lighter than yours, as I've consciously invested primarily in value and hybrid, as opposed to yield, plays.    

That's evidence of possible embezzlement by the board or management, lawsuits, poor management, ineffective boards, or other greater underlying problems.

Meaning that they will decide if they are going to fight or settle a lawsuit.

This will help to mitigate legal risks and lawsuits, which can potentially destroy your investments.

* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?