I have loss GOOD TENANTS because they shared a porch with people they did not care for.  

If I had known the numbers they quoted me were total garbage, I could have sold my houses much earlier and saved about $80K in losses.

I know you are dealing with a 3 month lease rather than a 12 month lease, but for example....Say I rent my home for $2,500 per month and have to lower my rate by $100 to find a quality tenant that is a loss of $1,200 over 12 months compared to a loss of $2,500 for each month it remains empty. 

By diversifying, but still investing in the most promising deals, you limit the possibility of a devastating loss without limiting your upside.  

Or, you can go with 85% of actual rent recieved and share in any vacancy or downturn losses..but you also get more on the upside if rents appreciate.

The state laws (do not quote me) appear to not let these companies increase rates (or its not easy) to pick up the losses.

I appreciate it.Aside from the option to be added as 'additional insured' they have the option to purchase a  "ProtectionPlus Bundle' from Surevestor, which includes several things like protection against eviction costs, wilful damage to property, over a $1 Million third party liability protection, loss of rent protection for 25 weeks etc.This is $50/month.

Profit and loss will be a guessing game. 

I still think if I would have worked it out with them rather than jumping straight to court, I would have taken a smaller loss.

That can be a draw back if the market is on a mad run up tho.Also, I would always have enough in a heloc to cover your 401k loan in the event of job loss or if you quit your job.