If acting in bad faith, the buyers agent would be at risk of a lawsuit also, it would seem.

I feel that the risk of them calling the note due in a high-interest rate environment in several years is far greater than the risk of a catastrophic lawsuit that my insurance does not cover.

We are looking into putting it into LLC that will shield us from anything that might occur, default on prop taxes, slip and fall lawsuits etc.

I'm not worried about some lawsuit he claims he's filing. 

Long time reader, 1st time lawsuit-facer.

To avoid lawsuits love THIER videos and podcasts but I’ve also found distressing info with some investors. 

Our primary residence has an in-law suite in the basement that we have rented out on Airbnb since December of 2015, and we also rent out the bedrooms in the main part of the house during the summer as private rooms on Airbnb. 

Can you market an ADU as a mother in law suite in CA?

Then 2 of the 6 bedrooms are basically in-law suites.

But since you are getting into it so young, you could find a small 2 family or single family with mother-in-law suite and live n the smaller unit/ rent out the larger one.