The reversal was catastrophic.

Anytime you make a claim, it does count on your insuredability going forward, I don't make a claim unless there is catastrophic damage, typically, but every case is different.

Just like you handeled the A/c fiasco-Handle the" Cat-astrophe" !

It should indicate the value it would take to rebuild the property in the event of a catastrophic/large loss.

Welcome Matt:That is a big ol question sir, and a warm welcome.I personally go for LLCs and insurance for asset protection.Short answer:If you vest all your properties into one LLC and something catastrophic happens, and they get a cutthroat attorney that wins a $5 bazillion judgment. . .They take EVERYTHING contained in that LLC.Whereas, now lessay you put each property in its own LLC (ridiculously and prohibitively expensive here in California-$800/year per LLC), and they get that same $5 bazillion judgment.Only the LLC that got hit will be liable.That is the end of my non-laywerly advice.YMMV, and hope this helps,Tevis

Don't spread yourself so thin that you won't be able to absorb an emergency, prolonged vacancy, or some other catastrophe.

It's easy to keep acquiring properties with a 0 down strategy, but that is exactly how your set yourself up for catastrophe. 

If you have never had tough classrooms to learn from (i.e. bankruptcy, illness, catastrophe, et all) then maybe you haven't been playing big enough.

But the situation could get uncomfortable - bathrooms in constant state of remodel, kitchen countertops not installed for weeks, etc.The pros that I see for an investor is that they have someone living in their flip, dramatically reducing the risk of theft, vandalism, or some overnight catastrophe (e.g. leak damaging flooring, etc.).

It's one of the carrots that employers use to keep their flock happy.I should have some catastrophic plan, I suppose... but I just don't.