Are there systems to protect a tenant from not getting ripped off.

It's a game of gambling and musical chairs.

With a heavy-handed new law that is the first of its kind in the nation, Seattle has set its regulatory crosshairs on landlords, attempting to police their inner thoughts and eliminate the possibility that their decisions could be motivated by "implicit" or unintended bias.Known as the "first in time" rule, the mandate forces landlords to rent to the first qualified applicant, rather than choosing the best fit from among prospective tenants.Sponsors contended that this unprecedented restriction is needed because traditional anti-discrimination laws do not protect against unconscious prejudices.

@Malcolm Lawson I think the more interesting one, though it doesnt come up very often is that in certain MD counties, and DC political affiliation is a protected class.  

@Guy GimenezHere is a media articleAUSTIN — Home mortgage scams in El Paso and Austin have prompted three senators to propose legislation to curb the abuse and protect homeowners.Senators Judith Zaffirini (D-Laredo), Kirk Watson (D-Austin), and José Rodríguez (D-El Paso) today filed several bills to address “wraparound” home mortgage scams, which leave homeowners at the mercy of a middleman who may or may not keep up with the mortgage payments.In one particularly egregious case in El Paso, a wrap scammer absconded with nearly $2 million from 200 families before the Texas Department of Savings and Mortgage Lending was able to intervene.

Landlords cannot discriminate against protected classes of individuals.

Any help on how to protect myself in this deal would be appreciated.

With no collateral what is their protection of a loan defaulting?

I don't necessarily think I am playing with fire if I navigate my way through this with protections. 

Additionally, will this insurance provide me with the same level of protections as an LLC?