Unlike a 20 year old furnace that just stops working, a water heater will flood and cause massive damage when if fails because water heater failure is normally due to the tank rusting out. 

it's hard to hedge against a specfic industy in momentum, especially when you don't know what the potential mechanism for failure will be  to short against.

Your comments at www.biggerpockets.com bear this out, as does your almost complete failure to utilize any of the training and mentoring assets made available to you.

BiggerPockets is a great tool to view and hear success/failure stories to gain a little bit more of a grasp on the market.  

It will have been about 2.5 weeks since the initial problem with the AC unit started.My tenants are saying that their May-June electricity bill is twice as high as it usually is, claiming it's because the HVAC unit has been running inefficiently due to the motor fan failure. 

Discuss the failures with the manager and see what happened, perhaps you need to pivot to the alternate manager if systems and controls are not being enforced. 

Indy included that a total melt down like those other areas experienced is in the cards.the bigger risk to failure in rentals is just burnt out landlord syndrome and those buying thinking they have solid performing tenants when in fact they have horrible tenant pool in their area and the tenants cause consitant loss's for the landlord which creates this burntout landlord syndrome and erosion in pricing..  

All it takes to be successful is just one million dollar idea in your career.If you end up having to go back to a W-2, as I did, don't think of yourself as a failure.

Tell her frankly that if you see a lawsuit even come close you will counter-sue for failure to perform.

I have found since being on BP that many people talk up their successes, which is great, but it creates a synergy  and we often forget to discuss about the reality of life, success is usually preceeded by failures.As a Newby trying to get into REI I'd love to hear your blockbuster failures.