All I'm saying is--although I'm personally not into acquiring properties with negative cash-flow--I'm aware of strategies where it can actually make good business sense to acquire properties with negative cash-flow.Additionally, the issues I raised about risk and speculation were simply to show that cash-flow has some exposure to risks and speculation just as appreciation and leverage do--albeit different amounts and/or types.

I've done 2 new construction projects thus far, and plan to do more in the future to have some exposure to market trends and to have nice capital injections every once in a while to pay down on my LOC's.

Most of my loans have started with a regional credit union and only 25% of them or so were sold so my exposure to the instance you are describing is only in regards to the insurance issue.

That leaves exposure for tortuous interference in a business relationship.

Also as each property is in its own LLC, my maximum exposure is only one property.

Don't forget to take away value for busy street exposure, nearby detractors (backs to a commercial building or parking lot), or anything else that may steer buyers away from the property unless priced below average comps.

True it's easier to buy outside the loop but I don't see cash flowing a couple hundred bucks a month with a $70k - 150k exposure as a great deal, especially with little appreciation.  

The exposures a tenant creates are just as glaring as those you have as the property owner.

This might substantially increase or decrease my savings potential.The one thing that has helped me the most is exposure to different aspects of the businesses (construction,, realtors etc...). 

With your education and training, it would seem that Project Management would be a great fit, and give you exposure to all aspects of the business.