The property requires a full top to bottom rehab but we are preserving a lot of the character elements of the property such as the original fireplaces and the broad staircases.

This will be my first time dealing with a fire damaged home so not really sure how to calculate the ARV.

Then, there was a leak and water damage that has led to a million calls and headaches trying to handle deliveries, repairs, etc from KANSAS.

The long term leases lets me get the cash deposit as well, just in case they end up damaging something.  

It saves any reputation damage within your friend group and in the local investment community.

Or lets say a tenant causes some damage beyond their security deposit.

And here's what we found during the due diligence period:MF had major sewer line leaks, plumbing leaks, flooded crawl space (from said sewer/water leaks), leaking "new" roof and damaged decking because the flashings weren't installed correctly, foundation issues, bug infestations from multiple nasty tenants and EVERY system in the property was well over the life expectancy. 

If so, you win, with attorneys fees paid and possibly punitive damages. 

Any entrance upon or movement across the Roadway be any person whose rights arise under this Easement shall be conducted thereon such that it does not damage the Roadway or any improvements thereon, or unreasonably interfere with the rights of free use and enjoyment of the Roadway or any improvement located thereon by other persons whose rights arise under this Easement, or otherwise unreasonably increase the burden on the Roadway.Any person damaging the Roadway shall repair and/or replace any damages they may cause to the Roadway or any improvement thereon such that it meets the reasonable approval of the Parties.

The big "McDonald's hot coffee" awards you hear about are extremely rare and contain extra punitive damages above and beyond the regular award due to long-term, sustained negligence from the losing party.One other thought to help put your mind at ease: I personally know over 100 real estate investors, and none of them have been sued for more than $5,000.