The $700 it might cost me for an eviction lawsuit pales in comparison to the cost of litigation i may face by doing something wrong or assuming i know what i'm doing with evictions after foreclosure. 

We live in a law-suit crazy country,,,investors that are not protected with an LLC can loose everything with one law suit....

We have threatened a lawsuit for Breach of Contract, since Seller did not continue with the signed contract.  

There have been some lawsuits over just this think. 

Doing this protects you from potential lawsuits.

And it may also get the tenants to back off/calm down, so a lawsuit never even gets filed.  

If one of your tenants gets hurt you should expect a lawsuit and your insurance company won't defend you.

On my JVs, although its not for a rehab deal, but for construction, I define net profit first, all income less all expenses, then profit split, dedicated joint checking account on both companies, monitored by a third party bookkeeper reviewed by cpa, little expensive and unnecessary expense but keeps the lawsuit away.

could you be exposing yourself to a lawsuit?

On the other hand paying cash can make you a target of lawsuits from unscrupulous people who see deep pockets.