Unfortunately you will have to spend money to defend but in some cases you can recoup legal fees if you prevail and the suit is baseless.The key is to make sure that you know what your doing first and foremost, Structure your deals correctly and provide proper, complete and thorough disclosures.

How would I make the proper trusted connections?

I am stuck officially and have been for well over a year.

That being said, I would definitely make sure to get the furnace inspected by a licensed professional and have it checked for proper operation and no CO2 issues. 

I wouldn't invest in a property without proper inspection.

IIRC WA did pass in the last few years statewide clarifications that if occupants of a property could not produce documentation of rental agreement they could be treated as squatters and removed by the sheriff without the same eviction process as for an official tenancy.   

Obviously, property development is hard unless you have the proper local associates and connections and have access to financing.

The amount of liability coverage would optimally be equal to the your assets plus 5 years of income to properly protect you financially in the event of a severe judgement against you.If you need any help or would like broker recommendations, I am happy to assist!

I’m not in the proper position and would like to know how can I obtain proof of funds from either lenders, private money investors etc.. also if you know any please contact me or comment.

By the way this is my first official investment I have been a accidental uneducated landlord for 5 years.