When you reach the point of having assets with equity and/or cash flow to protect, and you implemented/exhausted all the other means of risk mitigation (insurance, umbrella insurance, proper property management, etc.) than you can complicate yourself with more elaborate asset protection structures.

The HOA is saying they aren't responsible for relocation.Today, I just got hit with a $31k bill because my insurance denied the restoration, pack out, mitigation and storage all of my renters personal property, to get it away from the sewage while the unit is being rebuilt.

It is not on demand, and will give me time to call service company When it came down to water pipe leak coming from the top floor affecting other tenants in the lower floor, how do you mitigate issue like that if you are not living near by?

It should be the result of a deep conversation with a tax professional to understand the pros, cons, and risks.If you have a mortgage on the property, I agree that it opens a lot of tricky side effects that you need to mitigate.

It depends on the situation, the contractor and the market you are in, but generally, if this is someone you've worked with, you trust and they do decent work, I'd chalk it up to miscommunication, offer to split the difference as a peace offering and devise a plan to mitigate this in the future. 

I'm always curious how rehabbers mitigate homes like these.

@Scott Morongell thanks for your feedback, totally agree that scale can mitigate risk.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

Now, I need to know the exact usable space, wetland delineation, water & sewer hookup cost, mitigation banking, cleaning up the trees, construction cost as exact as possible.

I see your points, but it all depends on probabilities and mitigation.