@Aaron SantasI'm a catastrophe property insurance adjuster and I just have to say after reading through the thread that I appreciate that you are willing to assist and give out good information!

Unless we really are on the edge of economic catastrophe, in which case I take back everything I just wrote: http://www.nytimes.com/2010/06/13/business/13gold.html?

StanleyAny system that uses combustion as a means to heat anything poses an un-necessary risk...regardless of circumstance or cause any failure, diminished performance, or catastrophic failure with heating equipment ( stove, oven, furnace, water heater ) can have devastating consequences As a former public safety official I would never have any devices that use combustion as a means of heating anything especially as a landlord Best wishes for your continued successBob

Thinking of insurance as what you will lean on for catastrophic losses will help you as you go along.

What are your contingency plans for catastrophes like that?

If there's a catastrophe that could be averted by solving a quadratic equation, they're ready!

(The deferred maintenance can be figured into the 50% unless there is something catastrophic).

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

I also carry a line of credit on a mortgage free home that will take care of any catastrophe.

Every catastrophe is also an opportunity.