Anything that has made it through 80 years of earthquakes is probably built pretty solid.

If you're going the umbrella insurance route, make sure it will cover you for several things including just the routine slip and fall (like mold or earthquake).

And that cashflow is not playing the most important role.We are lucky to live in an area that does not get hit by hurricanes and earthquakes, has a very diverse economy and is right on the 5th lagest fresh water source in the world.

I've limited my criteria  to markets without regular hurricanes and tornadoes, floods, earthquakes, wildfires,  snow/ice/frozen pipes and reasonable LL-tenant laws. 

@Chris Allen, if you want to be thorough, make sure to account for the following expenses:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance  a) Property Hazard Insurance (0.3-0.45%)  b) Flood Insurance  c) Earthquake Insurance  d) Umbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy)  a) Water § Sewer § Garbage  b) Electricity  c) Natural Gas  d) Propane9) General Maintenance (usually 5%)  a) Upkeep § Landscaping  b) Snow removal  c) Repairs  d) New Appliances  e) Make ready10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.), including...  

If you're going the umbrella insurance route, make sure it will cover you for several things including just the routine slip and fall (like mold or earthquake).

:) these are good points about what causes down turn recession and they are basically never the same at least the ones I have lived and worked through.. coming into the industry in 75 76 it was Vietnam war wind down  economy not great.. then you had the Carter 18% interest rates then you had the S and L crisis.. then at least in SF Bay area and CA in 89 to 92 was a huge downswing in real estate values.. caused by earthquake and war . 

@David Nacco - first make sure to account for the following expenses in your calculations:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance a) Property Hazard Insurance (0.3-0.45%) b) Flood Insurance c) Earthquake Insurance d) Umbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy) a) Water § Sewer § Garbage b) Electricity c) Natural Gas d) Propane9) General Maintenance (usually 5%) a) Upkeep § Landscaping b) Snow removal c) Repairs d) New Appliances e) Make ready10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.), including...

@Kumar Gaurav when you are looking at buildings like the one my buddy Account Closed pointed out, you need to keep in mind that you will be on the hook for an earthquake retro-fit because this building has a "soft" first story.

And I'm especially impressed with your mission work in Haiti.