Short of extremely catastrophic situations you WILL get your principle bad and you WILL get exactly the return the bank stated you would get.

It makes me more comfortable aggressively setting aside money to buy my next rental because I know that if catastrophe happens, I can tap into that. 

With just the LLC and no additional insurance protection, you would most likely be losing the asstes/equity in the LLC that has a catastrophic claim.

Google Drive in the event of a catastrophic hardware failure.

Insurance should come through for you when you have catastrophic multi-thousand dollar damage.

@Wes EavesThe fact that it's inside the house is even more of a reason to replace it early rather than waiting for a catastrophic failure.

If this would cause you catastrophic financial harm, then don't close ... in fact, don't even open escrow.If and only if you have your downside covered, then and only then consider the upside and if the risk, reward, and amount of work justifies the upside potential.

The answer to those questions, and many, many more will be the difference between a great deal and a catastrophe.

Mistake will cost us a few grand, so not catastrophic but undesired.Good luck

Getting a deductible of $2,500, $5,000, or even $10,000 can drastically reduce your insurance rates and protect you in the event of a catastrophic loss.