This amount is into the 6 figure range meaning that I will need to come out of pocket with an amount greater than my initial investment in the building in the event a major earthquake would destroy the building.

check out insuremybrrrr.com 

@Allende Hernandez what happens if one or more occupants move out and the others stay?

This is my first post on here and excited to share my real estate investing journey with the best partner in the world, my wife.. we are looking into buying our first investment property via hard money.

Yes, all those are considered but I always appreciate more experienced investors looking out for me so thank you 

We would take this house in return for a 500k property that is NNN leased.  

Quote from @Frank Nguyen: Frank, this is a common tactic.

Hope this helps @Blake McWilliams

I’m looking into buying a rental(s) in this area.

If you cash out equity in a property, you are "borrowing" that money from the lender.