She had some other options that didn't require a 4 point, but they are for catastrophic type events. 

Doesn't mean catastrophe.

If rents drop catastrophically you have a long way to adjust them if you own free and clear.But you are also getting the benefit of leverage on the other property.And best of all you are setting the stage for future growth by concentrating equity. 

I've rented to USMC personnel in the past, which was "okay"... a few hiccups, but nothing catastrophic (thankfully).

And no mistakes are going to be so catastrophic that you can't recover.I see a lot of people wanting to learn and study and go to meetings and prepare and be so ready and knowledgeable to tackle this industry.

Some well-established investors who have a "wiggle room" can survive a catastrophe, but some people here are literally borrowing to invest in the housing market. those who I worry won't survive.

It's NOT comparable, because every state is going to be different, as one state may have minimal natural catastrophes; whereas, another state may have floods, hurricanes, etc that are taken into consideration. 

I know that you fundamentally think the country is mismanaged and it headed for catastrophe.

A $20,000 hit like yours would be catastrophic to my business if it wasn't covered by insurance.

However, we know we've reduced our exposure to all but catastrophic risks.Just my $.02 on the matter.