Minnesota set landmark precedence in how claims were handled when we (various builders) filed class action lawsuit vs ever major insurer in MN, with countless homeowners, and won. 

Zillow refused, so the seller filed a class action lawsuit alleging that Zillow was, among other things, violating the state’s Deceptive Trade Practices Act and Consumer Fraud statute.

Provided you properly maintain your properties law suits are extremely rare. 

@Roman Ustoyev a better strategy may be to set up LLC protection-friendly state like Wyoming or Nevada and then register to do business in Connecticut.To your benefit, there is a line of cases holding that Wyoming / Nevada law must apply even if any lawsuits were to originate from Connecticut.Set up LLC there and then venture into the less friendly states like CT / NY. 

(at least briefly.)Or, the lender can see that their path to foreclosure may become a lawsuit and they will simply postpone the foreclosure sale until the Quiet Title is dropped or resolved then they will file foreclosure proceedings again.

As far as duplex vs. in-law-suite goes, I'd probably focus on in-law-suite/adu properties as those will likely be in better neighborhoods (generally speaking, there are some exceptions).In-law-suites do present unique challenges such as utility bill back (since they are almost never submetered).Hope this helps.

There have been a few lawsuits between off site rental companies and the on site rental management companies.

If you're like most people buying a home to live in is one of the most expensive purchases you'll make, do you want to worry about being served with a lawsuit alleging you don't own the property or someone has an easement through your back yard you didn't know about. 

I also look for lawsuits and see what happened in them.

Then the lawsuit settled and all was right with the world again.GL