All of them need to be used in conjunction for a comprehensive structure giving you asset protection.Now some people will tell you they are not using insurance nor any asset protection at all and have done well for years, some other will tell you horror stories about losing their shirt on a devastating lawsuit.

Seller sold by owner and took a looking to my background, story, family and after 2yrs of looking and losing to all cash bids, the stars aligned.

You can renovate it on your own schedule, and don't have to lose hair over immediately getting an ROI.

Because your market is going to correct and fall and you're going to lose equities in your home.

Note, even if insurance pays for all the damage your property suffers, you still lose.

Another thing to be aware of, the insurance marketplace is losing money on apartment complexes. 

However, I assume banks will be losing big time in such a scenario.

Of course, if your mortgage payment is PITI (including taxes and insurance) you can nix those from the above list....and likewise, if you're managing it yourself you can lose the prop management fee.When I don't know much about the property and am just crunching numbers I'll use 8-10% for vacancy rate, 8% for property management, and 5% for each of capex and maintenance (total of 10% for both).If I know the property is new construction I'll use a smaller number for capex and maintenance - if the property is old, I may figure a bit more.

It loses you money.Think of your cash represented in 2 forms, liquid (cash flow) and solid (equity). 

Says he isn't losing any money but also isn't making any.