In a sense, we would be accepting the risk of this place potentially decreasing in value as much as it could appreciate (e.g. if there's an earthquake or other major damage, etc).

In my opinion, a big correction isn't likely to happen in the next few years unless there is a catastrophic event like a major earthquake or a volcanic eruption. 

The market is probably not going to do too well with the volcano eruptions...no...not for the lava threat...but the volcanic ash-smoke and earth quakes (which can cause damage too).My guesses with regard to the market on the Big Island.

It seems to be 50-50 split between paying properties off as soon as possible or at least early, vs. leveraging them and buy more properties faster.One area of exposure I have been worried about is earthquakes...that is a lot of equity that could crumble.

God help us if there's an earthquake.

The old hippy farms will come back.Mixed use, where owner/tenants go downstairs to the office or shop.Green housing at higher prices, nicer developments.Apts and condos that are earthquake/tornado proof, or close to it.

Earthquake insuranceMy initial thoughts are is that it's an unnecessary (perhaps) and expensive (definitely) item.

Besides, the house is old and insurance is expensive once you include the earth quake coverage.

Dale - "FL - 6 months of each year is spent watching for hurricanes" Does that make you stay away from other areas with other natural disasters, like earthquakes/tornadoes?

Got earthquake insurance.