Putting all your eggs in one basket?

[Pat Jackson]

I just got a house under contract in a medium size city in Missouri. I'd like to build a buy and hold portfolio in this city. It's not likely, but it's not impossible a tornado could level this city, destroying my entire portfolio. Of course I'd have proper insurance, but what would happen? It could take years to rebuild and rerent. Could I take the insurance money, pay off the mortgages, and run with the rest? Is it my civic duty to rebuild? Do people even worry about having too many properties in the same town?