I would never have signed a lease with them if I had done better due diligence...but it was a good learning experience that fortunately wasn't very catastrophic and now I just THANK my lucky stars that they never moved in.I wish I had been a member of BP back then, let me tell you!

Natural disasters and catastrophic damage from accidents... maintain appropriate and sufficient insurance for the properties and for your liability.

As rents increase, expenses should stay relatively flat, barring any catastrophes.

Sure if we have a catastrophic event then things could turn on a dime but without some huge catalyst things usually take a bit of time to turn.

Only concerns is all the latest news on potential catastrophic natural disaster like San Andreas earthquake making me want to move out of state lol.  

If that happens, then property owners will end up doing really well if they have strong cash flow and long term financing.I think the risk is for those who have shorter term or variable rate financing.End of the day I think there is still money to be made in real estate, if you buy something 10-20% below market and we get a 15-20% correction followed by a rebound 5-10 years later, its not 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 recommend you have some amount of coverage for catastrophic events and injuries.

@Brent Rieman it doesn't necessarily take something catastrophic to get someone to 480 if the big problem is just that they don't have enough history in general.

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