Part 1 of 5: What is a Deductible Buy-Down ProgramDeductible Buy-Down programs are insurance policies a business/real estate investor can implement in their protection plan to lower the amount of deductible they have to pay when there is a claim made.These are policies which are in addition to the normal coverage plan (property, liability, auto, umbrella, cyber, etc.)Part 2 of 5: How Buy-Down Programs WorkThey are one of many ways a person/business can implement alternative insurance protection.Buy-Downs are added to protection plans to lower out of pocket expenses for the insured at the time of loss (a claim)Example of how a Buy-Down program works:You have a commercial property portfolio.Its insurance policy has a deductible and a premium.

Personally, I believe that the value in these homes does not lie in the cash flow (although positive NOI is relatively easily accesible given the nature of these homes in distress), rather the appreciation value.

My concern is addressing the scenario when I need someone to move out or I need to be compensated for property damage, while still maintaining the living agreement format and binding nature of a lease. 

If the market rent is low, Airbnb might be an alternative route.

Because when you buy a distressed or rehab property it needs to be done with alternative lending.

It does seem to be the case that 4-plexes naturally appreciate faster.

I have suggested in the past that a good lawyer will be able to pierce just about any corporate veil and a good umbrella liability policy may be a great alternative. 

Alternatively, you are putting your investment in the hands of an operator with an apartment syndication, but the company managing a large apartment complex is a professional organization managing potentially thousands of units.

I have an obsessive nature when it comes to pointing my mind towards something, I am currently listening to the Bigger pockets podcast and I am on episode 20.Sorry for the spilling my guts but I look forward to reading and searching for people who are in similar mindsets as myself. 

You'd actually want to speak to commercial mortgage bankers because of the nature of the loan not the type of property (you're using them as income producing properties not your residence).