I mean this BRRR for some reason folks think it was invented in the last 5 years.. when I was in my HML days I did 40 of these a month for investors all over the country ALL turn key worked in the BRRR method. it was only when financing for rentals collapsed did turnkey change its model to fully finished houses.. they were all BRRR before 08.. 

If a market collapses.

Is it to hedge against a collapse of the financial system? 

If the deal collapses and I would lose everything, I'm out.

In hindsight, having lived through the collapse, I'd say we (the US) dodged a potentially lethal bullet. https://projects.propublica.org/bailout/listThe current Farm bailouts are just unfolding, with last year's $12 billion bailout and today's \announced $15 billion additional bailout that are reimbursing farmers who were harmed financially by the administration trade policies.

Combined with your savings rate of $30k from your job, you're collapsing the timeframe down to 3.24 years.

See also Robert Toll, America's Largest Luxury Homebuilder, Not Laughing Anymore By Max Abelson - 02/06/08, a few years later when Schiller's predictions were accurate and Toll Brothers collapsed. 

With real estate, you maintain much more decisionmaking control and although we experienced a wicked housing collapse last decade, many real estate investors can still argue they maintained cashflow and that their respective market didn't feel the same pain others did.The knocks I would have against real estate is it is significantly less liquid and the fees are much higher when it comes to buying, selling and financing.With the introduction of Robin Hood, it's a race to the bottom as brokerages have been slashing trading fees in recent years.In my mind, there is nothing more passive than buy and hold stock ownership, though you may be relying more on capital appreciation, whereas many real estate investors prefer passive cashflow.

Say, chimney collapses and crushes your automobile.You'd kinda want to have insurance under those situations, I'd expect, and their probability is much greater I think. 

People used to sell you gold as the answer to when “civilization/governments collapse”.