The first law or lawsuits is you sue the people with the money.

A fellow land investor told me on small tax deed deals instead of paying $2k+ for a quiet title suit, I could just sell on a land contract with a stipulation for no payoff for 2 years minimum. 2 years pass and title is quieted via the passage of time, no lawsuit needed.

Or find a mother in law suite and make money day one instead of after a remodel.

TurnoverIf you do what we say I can keep you from unnecessary legal expenses, like lawsuits.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Google Clayton Morris lawsuit and/or Morris Invest scam for a cautionary tale of what not to do when buying turnkey real estateUnderstand you can not eliminate all risk, only mitigate it.

Quote from @Brandon Lashmet: $800 a year to maintain, plus the initial time and cost of setting them up, plus separate bank accounts, etc.People set up an LLC to separate business assets and protect their private property from a lawsuit.

condo lawsuits?

Some thing you should know are: When is the roof covered by replacement cost vs cash value, how does color matching shingles factor into partial roof replacements (which may lead to entire roof replacements), which shingle is on your roof now and is there a class action lawsuit effecting that shingle (there might be).  

You could even attempt to find a place with a mother-in-law suite as well.  

A lot of my recent house hacking clients have had success with buying a home with an in law suite.