Ultimately, you're probably not going to be burned by the laundry issue and overuse, but why even open yourself up to the possibility?

If so, that will increase your premium overall, in case your building catches fire and burns the other property then they will come to find you.Also, don't wait for your current insurance to end for you to get new insurance.

And if you live two hours away like we did, you may eventually get burned out despite the financial gains. 

It's the same as someone's electrical wiring in their upstairs wall sparking and burning the building down. 

I’ve gotten burned badly on two partnerships that I didn’t have agreements on, the first ended up in an expensive court case.

I spent a lot of money on mine and have adjusted it each time something else happened where I either got "burned" or to stop something  from happening again in the future (it "grew" from 4 pages to 6 pages in length).

I think the lessons of '07 have been burned into people's minds and they are more cautious and conservative. 

I believe that historical testing will prove the 4% rule, depending on when you begin pulling money out (ie: if you formed your portfolio and in 1929 and began pulling the 4% in that year, you got burned, but if you stared in the 19teens, you were fine.- I partially agree/slightly disagree with your discussion of owning.  

That means if you turn on an AC in a room and then turn on something else in that room, you might burn down the house.I had to get the electrical permit - $800 and do a proper electrical wiring on the outside of the house from the main panel, another $6200.

If you exercise your option (at $85K in your example) and then turn around and sell for $100K, you'll burn up something like $11K in commissions, closing costs, and seller concessions.