TLDR: Insurance is supposed to be for catastrophic lapse, use it that way.

I think if a downturn comes beyond projected for Austin's specific economy, it'd be cause of China doing something with Taiwan creating catastrophic issues in semis.

When you have enough saved that losing $25K will not be catastrophic and you have enough knowledge to evaluate the risks associated with a syndications, join a syndication that you have establish a relationship (so accredited investor or sophisticated investor is not required).  

I also have a $175,000 line of credit at the ready if something catastrophic happened.

@Mary JayEvery catastrophe is also an opportunity.

For example, if you have a large multifamily, and experienced a catastrophic fire, or major earthquake, tornado, etc. the PM could lose a significant cash flow stream from the management fees and other routine charges they may have.

I will never recommend your company again, and will not forgive the fact that you simply walked away from a catastrophe of your own making, and left me holding the pieces.

I am 57 years old and I have seen the people of this great state bounce back from these types of catastrophes more than once.  

Save the insurance claims for the true catastrophes. 

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.