IMO identify what you would consider an emergency. 

Consider an approach where you add value.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

Would strongly advise anyone looking at an owner occupied 2-4 unit to consider an FHA loan.

They will talk to the retiree that have the money in their IRA, and help them understand the IRS regulations.Regarding joint ventures, I would get out some letters and CPAs and doctors and ask them if they would consider an alternative investment like Joint Venture Partnering.Everybody around you is a possible private lender or joint venture partner.

Maybe one might want to consider an after-tax-cash-on-cash calculation, but equity pay down and property appreciation (if any) do not come into the equation.  

I would consider an LLC at first because they are easier to manage.