In the event of a true disaster, just know you can't keep yourself whole.Basically, you're participating to save on pennies--via a normal insurance process--and to keep yourself exposed to any fat tails event. 

There are a lot of different ways to start investing, so trimming the fat on the direction is a great beginning. 

In some areas Taco Bell is their idea of Mexican food.So your suggestion may be great for Southern CA and not so great for other markets.

For example, take a fat food franchise.  

Thanks  Sorry Couldn't seem to edit. 200k property with 200k in insurance not 100k my fat fingers messed up :) The quote is a little above 300k

If things go belly up, the other loan gets paid first. 

Throw in literally anything you want, plus salt, and boom you have chicken soup, with all the great nutrients from those chicken bones/fat.

Agreed mate.Too many variations and mud thrown on the word over the years.Maybe we should come up with a new phrase lolSomething on the lines of "House Hacking" and "BRRR" 🤷‍♂️"Fully Renovated And Tenanted""FRAT" property investing lolCut the FAT and invest in FRAT haha

In the end, there wasn't enough fat left after purchase and rehab so we let it drop.

How are you going to refinance before the grace period is up.In the past, when I read people on BP or hear stories of people using credit cards for real estate and then share their story of how they defaulted or went bankrupt, my response is usually not very polite and it is somewhere along the lines of "oh really, would have never expected that to happen", and it goes on the list between rubbing a polar bears belly and getting mauled and sending $1M to my nigerian cousin in order to collect my inheritance and not getting anything back.