I start getting pictures of the job by some of my other guys - paint runs, using the wrong colors in the wrong rooms, he has is 9 yr daughter helping him, different women in there each night (basically a mess). 

However, this embraces a vast area. http://us.spindices.com/indices/real-estate/sp-cas...Do people buy these two flats places thinking they will make any money?

Instead of avoiding the thought of death, I embrace it, and that puts a lot of things in perspective.

Quote from @Chris Seveney:I've seen some big ones in the news, but they are always for large investor slumlords that have egregiously ignored the law (and warnings) for a long time, or Landlords that are downright evil (sexually assaulting women, physically attacking Tenants, etc.).The best protection: know and obey the law, treat your tenants honestly and fairly. 400 rentals under management, 13 years, and I've never been sued. 

Hopefully, a wholesaler with some knowledge and ability in my market will approach me, in which case I will embrace him/her.

If that is not you, it is ok, embrace it, and find what you ARE and what way to best invest as that.

Don't be afraid of leverage, embrace it:) Let me comment on the money.

In addition, I told them that I thought they should have to tell people when they go into space that they counsel sexual predators, as there are women that sometimes work late, and those predators could be hanging out in the parking lots etc. and endanger the other tenants.The counselors told me there is no cure, but there is "treatment" to try to teach them how to handle their urges, etc., and that in regard to child molestation, it is a "victimless crime".

I currently have my home in Redding rented out to a women's sober living home.

If you are in a 500 yr flood zone then you have a decision to make and if you are at all risk adverse then get flood ins. and if you are not in a 100 or 500 year flood zone, and have inadequate reserves to handle damages, you're probably a good candidate for for flood ins but you are not embracing many of the strategies that are consistently discussed here on BP and other REI sites.