I'm now just paying about $1k for my taxes and insurance (including super expensive earthquake and umbrella liability policy) which are essentially my living expenses.

@Danual Berkley It could have been rented as-is but we put in a fresh coat of paint and made some repairs to the porch railings due to safety concerns. 

@Russell CazeaultIf you are seeking legal protection, I assume specifically against being sued, have you considered purchasing an insurance policy for it?

I converted my property from a three-family to a four and am now having to get a commercial insurance policy instead of regular homeowners -- it's not a big deal, but it is annoying.

Not everyone offers it but if it is in the policy, it shouldn't be a problem to claim it.

Like a spare tire, if you have a flat, you switch to the spare tire while you fix the real tire... just like that you need spare buyers so you can still sell your contracts while you fill in the empty spot with a new buyer.In order to have these spare buyers ready we have to deal with a factor of safety.

I would just be wary of "general" advice for safety.

The activities of wife with respect to the rental properties included, among other things, cleaning common areas, collecting coins from washing machines, performing repairs at the properties, communicating with tenants, collecting and depositing rent, maintaining insurance policies, purchasing materials for the properties, as needed, paying bills and keeping books and records for tax accounting purposes.

If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.6.

Fire/hazard insurance policy must be an owner occupied policy which won't cover you for STR as there is more risks, so that's a problem.If you buy as investment the long term rental income can be used to offset that payment thus is easier to qualify for but rates are higher, down payment needed might be more to make the property cash flow.