Hedging against market corrections

[Jonathan Roveto]

Hey all! I have 4 SFHs and hope to get a couple more in the next year or so. I'm a buy/hold investor that generally gets a $350/month cash flow from properties (mainly saying this as to note that I don't invest based solely on appreciation). With that said, what is everyone's thoughts on hedging against market downturns? I suspect one good thing to do is simply to have reserves setup in T-bonds, and if a market downturn hits, sell the bonds and put the proceeds to (all of a sudden) significantly cheaper properties. I think that my cash flow and the fact that I have an actual day job should keep me in good shape in case of vacancies or having to lower rents for a few years. What other strategies do people use to ensure that you maintain good returns in the grand scheme of things when/if the market corrects?