In a catastrophic event, could you lower the rent and stay solvent?  

That might happen ( I doubt it) but I do not think it will be as long lasting or as catastrophic as those guys suggest.  

Figuring out realistic projections--cashflows, depreciation, cost recovery, exit strategy, IRR, construction costs, time required to stabilize the building--was challenging for me.I required a 30% IRR because I assumed I would make catastrophic errors along the way.

This gives me a lot of breathing room with vacancies, economic downturns, or other catastrophes.5.

We aren't talking about regular vacancy, repairs, rent controls, market changes or even natural catastrophes... we are talking about a naked violation of our property rights that compels property owners to accept tenant abuse with no recourse.

I want my insurance for catastrophic claims.Unfortunately the insurance companies keep and share information on any and all claims and use it as an excuse to raise our rates or drop us. 

Obviously a large part of what I mention is for personal use as well as investing for wealth to diversify territories for unforeseen world catastrophes.

By setting a realistic remodel budget, socking some of it away for little catastrophes, and planning and monitoring your renovation carefully, you’re looking to come out ahead in the end.

I also have a $175,000 line of credit at the ready if something catastrophic happened.

This isn't great, but is far from the catastrophe that the comment I was responding to was describing.I'm not arguing the fact that we're in a recession.