The structure you are looking at works fine so long as the asset generates sufficient cash to cover expenses; however, as all RE investors know, the unexpected furnace malfunction or roof failure requires injection of outside capital. 

My suggestion is to create a backup no matter where you put them so in case the hard drive fails or google drive kicks you out or has a malfunction etc....you have a secondary copy.  

The insurance -"rental dwelling policy" does NOT cover basement flooding due to sump pump malfunction or sewer backup.

I didn’t know why the first thing the doctors would check when I feel sick or have a fever was because it could be a malfunction.

To me, there's only two reasons you should even consider charging a tenant for a water leak:  1) They intentionally caused the leak through some sort of negligent act or misuse of equipment, or 2) They didn't cause the leak but they noticed a readily apparent leak (and you can prove this) and then failed to notify you of this leak and that failure to notify you allowed the leak to become worse and cause additional damage above/beyond what it would have had they notified you right away and allowed you the opportunity to deal with it immediately.For example, my lease has a clause that states, in part: "Tenant shall immediately notify Landlord, in writing, of any problem, malfunction or damage.

I also put in my lease that these machines are not considered a necessity and in the event that they break or malfunction they will be repaired or replaced at my discretion.

Little leaks will not be reported, slightly malfunctioning systems will not be noticed, you don't get to put your eyes on the property more than once or twice a year.

The heater malfunctioned causing carbon monoxide exposure to guests enjoying the pool.

@Tim Herman It feels like sometimes when you use the calculator through the iPad that you get a malfunction calculator because I redid it and everything about the calculator felt different and even functioned differently and the analysis was much different so maybe I just had a bug

We keep a lock box connected to the water spicket outside in case there is ever a malfunction with the key pad,  so if guests can't get in, I can send them the code to the lock box to use the key.