After the Paradise fire Butte county lose nearly two-thirds of its population.

If you lose 20% to the PM, then you still have 30~40% profit. 

The problem with that is that now you're no longer tracking what you've paid to actual vendors, so you lose the ability to issue 1099's and know what you've paid who at the end of the year.  

You don't want to get a call 3 months into a project where you have lent money and hear the operator say that they ran out of money and need more money from you to finish the project or you will lose your investment.

All calculations suggest great investment for 4 bed 3 bath in good school zone, however once the tax estimator goes from $2200 to $9500 due to lose of tax credit from not being a primary residence it hard to see how to get property in SC.

Better to get what you can, than to lose it all.

Logically I can't make a solid business case to cancel them, as the cash flow is fine vs losing it all with a tornado.

I guess a flat seasonal fee like any insurance policy, sometimes you win, sometimes you lose.

This is not the best way to invest in real estate as you lose out on principal pay down but it gets you instant income that you can make mostly passive by hiring out the property management.

Those who blow it off eventually lose eligibility.To ignore the correlations is nonsense.