This allows me to have a built-in vacancy protection rate of 60-70%, meaning that rent from one unit can cover all expenses on vacancies that high, which is catastrophic, armeggedon-type vacancy figures for my area!

All in all it could have been MUCH worse.So, aside from that catastrophe, the only other complaint I have is all the separate bills I have to pay.

I just kind of think of it as an absolute last resort for emergencies, in the event of a catastrophe (e.g. building burns down).I'm curious how others treat it.

I also have a $175,000 line of credit at the ready if something catastrophic happened.

Taking someone else’s if there is an error in it then it can be catastrophic.

A wrap-around would expose you to potentially catastrophic financial risk. 

We would only use it for a major catastrophe (massive medical expense, loss of job for extended period, etc.), not for something that we should have planned for (new roof, car repair, etc.).

I will also be covering all the costs for the property during the term, so the owner can basically wash his hands of it unless something catastrophic happens.  

We could estimate on the low end that insurance for fire and flood is 1% per year and we all tolerate this cost because of the catastrophic loss a fire or flood would cause.

We told her fine, rescind our offer, which was disappointing because I don't think the pipe issue was catastrophic, but I certainly wasn't going to keep our original offer on the table.