One can go to zero the other can't. 

If done right, you're left with a cash flowing asset that you essentially paid zero to acquire. 

You are responsible for an HO-6 policy (often referred to as "walls-in").

its literally just a question about risk tolerance and timing.

Protect yourself with an umbrella liability policy if you're concerned about being sued.One girl's opinionStephanie

@A Bari many/most investors will purchase their first 5-10 properties under their name, and instead of an LLC, get decent landlord insurance and an umbrella policy to cover their rental properties (and home and auto too).

Old policy $780 agent found a "nice" policy for $1900.I get a policy through Geico, "it's a triplex--owner occupied" I adamantly said.

That said you need to set yourself up for success with reasonable policies.

Do what you wish but my take is... if your asking is sure as heck sounds like you dont want to trust your gut and reject (looking for someone else to validate so when this goes sideways you can say the "community" though it was a good decision).There are thousands of prospects out there... be a little selective, your looking for ZERO problems long term - this just indicates to me that your prospect has learned to be a little slippery, and if YOU get into an issue with them you can rest assured they already have some "experience" with the system.

What is your personal risk tolerance?