Tell me more about the project and where is it located. 

The sounds from the trains are not disruptive, at least where our property is located. 

We have had 3 people apply for the unit. 1 had horrible credit so was rejected. 1 was nice but disappeared. 1 we offered to and they chose a different place for location. 

Depends on where the property  is located as well.

Will depend on several factors like the type of property, type of tenants, your risk tolerance, other assets you own, your estate planning, laws where the property is located, etc.Any lawsuits would be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced).

Unless that location is in high demand at the very least you'll be experiencing a month's worth of income loss. 

The home inspection turned up a couple of issues on this older home. 1) the breaker panel is located over the sink (behind a mirror) in the master bathroom. 2) there are no A/C ducts in the master bathroom.

Location is fantastic though...

You are right, the good location properties can probably be rented at a premium if they are in any desirable spot in SD. 30% occupancy doesn't seem like to tough a feet, but like you said I'll have to do a lot of research first!

Your cash flow in a recession would largely be dictated by your location and the type of traveler staying at your unit.