In that situation, the loan documents usually permit the lender to "call" the loan.

I also like the idea of documenting any late payments so I can have that information in case I need to evict a tenant for chronic late payment.

Worst case you'll have to drive to your county office to search their computers for the notice of trustee's sale, notice of foreclosure or notice of sale document (the name of the document depends on which state you live in).This notice typically includes the homeowner name, address, date of auction, principal balance of the loan (or judgment amount), auction location, lender and attorney names.Good luck Newton! 

There will be more leads.As long as you are following protocol and using the proper documentation, I don't know of a legitimate reason (i.e., non-frivolous) why you would end up in court.

Ask the PM to send you their documentation on potential tenants so you can have final approval.  

., an LLC/business entity could be very beneficial.

If she is not a party on the Note (the debt), she will still have to sign the Mortgage (the document pledging the house as security for the debt). 

That is beneficial as well. 

Even a skilled real estate investor can get themselves in trouble, and sometimes solely because they prepared their own documents.  

If they end up appreciating a bit, great that can be a bonus, but for the most part I just want solid middle of the road cash flow investments that will be beneficial over time and just want to make sure I don't do something stupid over 6K in the mean time - Pennies wise, pound foolish indeed