Reporting is the key to making sure you don't end up in a situation where you suffer substantial losses.  

I've owned 4-plexes in other cities in the past and they were A class properties and suffered none of the problems I will describe below.

The other challenge, in my experience, is that a lot of the properties are ~80-100 years old and are suffering from deferred maintenance.

Mom had suffered a stroke years back and the wasn't quite the vibrant woman that ran these ventures.

We aren't looking to pay for insurance if already covered.Other Info:The condo complex is raised (Stilted)We have requested info from the HOA to see whats covered in the Master policy.Scenario:If we don't take this coverage (as its the master policy has wind and flood) and opt for the studs-in and contents only, would we be covered if say in a hurricane the slider glass got damaged by debris and the interior suffered damage, or if a flood affected our second floor unit, maybe even a wave?" 

Bettina,That is my sentiment right now, if i suffer a little more now I can use that extra money to get out of the corporate world sooner than later by building my investments quicker.

I agree that the tenants will ultimately suffer the most, through higher rents.

If the rents you mentioned are actual current rents for the building in question then I am guessing the apts are outdated and need some work and possibly the building suffers from deferred maintenance.

For example, if we had to suffer a larger loss, we would split that loss (according to the 50/50 idea), but I would not participate in splitting his loss of initial capital (the money he put down).

Here is a bay area software company laying off 1150 people http://www.sfchronicle.com/business/article/Autode...Brick and mortar retail looks to be suffering too as more people shop online.