They might not even do anything if they don't have that safety net. 

At what point does the BP community feel it is appropriate to not do this (aka what size safety net) where we no longer have to worry about the monthly flows for an individual property?

I'm sure I'm missing a couple others.I remember mentioning this when I first moved out here and how I was genuinely fearful from a public safety standpoint and then a year later October 1st happened :-(Plus on a better note, Golden Knights + Raiders + eventual NBA team (inevitable)...bound to bring an ounce of stabilization in rougher times.

If you have liquidity and/or other issues, you would want to have a margin of safety built in.

I would think immediately as this is a safety and security issue.

I am currently stationed at Lackland AFB in San Antonio and plan on investing in buy and hold investing anywhere from San Antonio to Austin, being deployed I have found a few like minded people who also want to get into investing and we have discussed everything from finding deals to funding them to forming LLC's as a safety net, but the first question that always comes up is where to start when we get back.

I thought there was something about being able to claim distributions and keep the safety of the entity intact.  

I fixed the safety issues and the house is vacant. 

As your portfolio grows, keeping one good easy-to-finance property free and clear can be a nice safety net.

They are running on razor thin margins.