How does one not have to deal with the headaches of tenants and toilets, looking for golden nuggets, dealing with contractors, etc? 

I just shrug my shoulders and say, "tenants and toilets".

What if your net income falls in the toilet because of a couple months of vacancy?

Watched our 401k grow by 6 figures this past year, without doing squat, and it was like watching paint dry.

Think about all the things that happen.Some words from your roommate tenants mouths:"I don't buy toilet paper I only use one square because I'm studying public health.""

The most recent was filing a maintenance request because the toilet wasn't flushing.

A side note, at $240/yr for insurance it doesn’t seem this would be a comprehensive policy that would cover liability (like if one of Your pipes breaks, toilet/tub overflows and does substantial damage to a lower unit) And replacement/repair of similar damages “from the walls in” for your unit.

Turn on all faucets, flush all toilets and allow the water to run while you are walking the property.

It’s an expected feature on all homes, sort of like a toilet or fridge. 

Break a toilet seat, be a good person and replace it, but not the downspout that fell, or kitchen faucet that’s leaking.