The engine will have problems in Your wife's car, tenants will move out in Your other rentals, prices will go up for repairs, hurricanes will come....blah,blah,blah....figure DOUBLE Your original time frame on repairs, ALWAYS.Figure 1/3rd higher costs than quoted estimates, BORROW accordingly.BE the BOY SCOUT.I have, I PREACH it to my borrowers/buyers/investors, & every operates under the "Be Prepared" philosophy;Do these things, & I doubt You'd ever have a "catastrophe".Trust the experts & LET them do their JOBS!

I guess just like any other investment, it depends on the numbers - the discount you get when buying as well as the exit strategy but I think my great hesitation is that at the higher dollar values, the margin for error can be catastrophic vs. much less when you're buying $50k properties.

Types of Cash Flow that Can Be SoldPrivate Mortgage Notes Catastrophe Fund SettlementsAnnuitiesLotteries and Structured settlementsCar, Marine and AircraftCharitable Remainder TrustsBail bonds secured by real estateDivorce liens Notes created in the sale of a businessMobile home seller financingViaticalsVacant land notesInheritance NotesReimbursement Agreements to Developer from utility company Vendor Carryback Paper Vocational School Paper Working Capital Financing Jimmy [email protected]

Types of Cash Flow that Can Be SoldPrivate Mortgage Notes Catastrophe Fund SettlementsAnnuitiesLotteries and Structured settlementsCar, Marine and AircraftCharitable Remainder TrustsBail bonds secured by real estateDivorce liens Notes created in the sale of a businessMobile home seller financingViaticalsVacant land notesInheritance NotesReimbursement Agreements to Developer from utility company Vendor Carryback Paper Vocational School Paper Working Capital Financing

Insurance with a very high deductible is sometimes called "Catastrophic Insurance."

I know some investors that with even new septics will not buy anything on land unless there is enough land included that they could dig a new septic beside the original should catastrophic failure occur.

It may be that either your job or your real estate holdings cushions you against a catastrophe in the other...Every serious trader knows it is REward balanced against Risk.

Sure, the growth is much slower, but if there were a job loss tomorrow or some other catastrophe, I really have nothing to worry about since I have a decent portfolio free and clear.

Understand that insurance is designed to insure catastrophe, but has evolved to the point that we expect to be insured for leaky faucets (ok, I'm over exaggerating here)The question to ask yourself is: would I have to put in a claim to replace damage caused by a falling tree or a broken washing machine hose if the damage was, say, $2500.

If I hadn't used the 50% rule and funded my reserves, this could have been catastrophic for me financially.