By diversifying, but still investing in the most promising deals, you limit the possibility of a devastating loss without limiting your upside.  

Legal consequences and potential financial loss that could have been avoided with timely updates.2.

Assuming you don't have a mortgage that requires a certain level of insurance, you can get a stop-loss policy covering all the properties. 

However, it adds up quickly if you analyze the cost of turning the unit, marketing, vacancy loss, and your team's time to find a new tenant.

@Roy Kinzer Rent control in NJ can be a tough pill to swallow and unfortunately has caused many of my deals to fall apart quickly once buyers/future landlords realize how strict the controls can be.

There's other items such as this where it may be helpful to talk to a CPA/EA for a little tax planning, especially since you'll likely get caught up in the passive activity loss limitations if taking bonus on a single rental property as I often see.It's also useful to mention that even if you do the cost seg study (I'm assuming you're doing one to be talking about this), you'll still benefit from accelerated depreciation in the form of shorter useful lives on the assets where you received bonus from.

Once again, I had to ask my family for financial support—a daunting task after the first loss.

Have you ever had a capital loss?

Tax free appreciation and rents significantly trump the loss of depreciation and custodial fees.

If someone had gotten hurt and sued for $1mm then these coverages would have kicked in.Having been thru the claim process on a total loss.