An LLC can be a good way to protect yourself from the backlash of a lawsuit, but many banks will not give out loans for properties that are company owned.Set up a checking and savings account and possibly another savings account for security deposits.

The only reason he began the process is because I told him the lender wanted them and wouldn't release any more money until they had them.Did a lot of research on him and I can tell you if you go to https://www.courts.mo.gov/casenet/base/welcome.dothis is the database for all cases in MO, and let me tell you, Rich (and several versions of his business Semper Fi or STL Flips) has almost 400 cases against him, breech of contract, small claims, lawsuits, restraining orders, possession of controlled substances, siezed bank accounts, etc. dating back to the early 90s. 

I wonder if all that cover-your-a__ talk actually helps protect the sponsor if there is an investor lawsuit.

I saw that Zillow was recently sued over their Zestimates , but people sue for anything these days .http://www.marketwatch.com/story/do-zillow-zestimates-mislead-home-buyers-illinois-lawsuit-claims-yes-2017-05-22In my experience it can give you a pretty close idea of value but actual comps or an appraisal of course will be a lot more accurate .Another thing is I've noticed huge differences between Zillow zestimates and the redfin.com estimates .I noticed something recently on zillow where it had something you can click if you don't agree with the zestimate.

If they have the money to put down, if they have a job that will support the payment under good lending guideline Ratios,  (I used to be a loan officer and that is how I was trained), and If they don't have *unpaid* child support, if they aren't *delinquent* on student loans, if they aren't currently in a bankruptcy, if they aren't currently in a divorce, if they aren't currently in a lawsuit, etc.

More specifically, start searching for an SFH with an in-law suite that can be sourced as either an LTR or STR, SFH with an ADU, SHF with an unfinished basement that can be converted into an additional unit, SFH rent by the room, etc. 

Read your laws else you're going to trivially lose an expensive lawsuit.

Are you prepared to defend a 10M lawsuit rather than spend $100 on new locks?

@Shantal Lawrence I don't know whether CT is a caveat emptor state or not and that will be relevant.My guess is that if you can show that the seller took active steps to conceal a material defect, you may have ammunition for a lawsuit.  

Never give a reason, giving a reason can open up a lawsuit as to why the tenant believes your allegations aren't true.