Mike Roddie:Putting the tax question aside, since only you have access to the records needed to analyze that situation, the real question that I think about is one of liability.Would you be comfortable having someone injured or killed in one of your properties, through no fault of yours, resulting in a million dollar judgment that would end up taking everything you own?

It is a liability nightmare for you if you allow it and you can not only be sued by an injured neighbor, your own insurer may cancel if they audit the property.Then he can jump off the roof all he wants...

You will end up with situations where the tenant wants to do work for discounted rent and that work could be against code or they could get injured in the process.Nope. 

What happens if you get sick, get injured and can't work, or even want to move to a different city?

Tenants were not injured and house looks to be badly damaged.Can anyone tell me what to expect with an insurance claim?

An accident happened, 2 employees and a 1099 guy got injured.

You should also talk to a insurance broker and have them review the policy with you to eval your exposure in the event of a catastrophic issue. insurance also covers lost rent and it also covers liability if a renter injured themself in your unit and sued you.

Do any go through this because they lost their job or got injured?

I have no problem if it is, but I might be worried about him/her getting injured or something.2.

When I found out they are not temporary, when the father in law was injured at work, I let it be known maybe it's time for them to leave.