You are LOSING money because you didn't even raise rents to cover those increases!

Have you ever heard of a Landlord being sued by a Tenant and losing property?

The interest that it does accrue is money you don't lose, but rather it does go back into your investments. 

U need to flip the return  75% to the money and 25% to you if have any hope of finding someone to do this that is not friends and family.. 10 to 15% is way to little for the risk of being a gap funder.. if the project does not work gap funder is the one who loses money..

But the mindset remains that the structure just loses its value over time.That's not to say I think property investing in Japan cannot work -- it's just the parameters are quite different from places like the US (like many things in Japan!).

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.

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

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

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.  

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