I would like to be able to make the deal without outside investors, however, non-traditional financing (from what I have found so far) often comes with higher interest rates and terms which, in the event of some catastrophic event, would have the property over leveraged. 

You can even find articles written about it by people who presented thorough analytics of what took place in Boeing management before the catastrophic events brought media attention to its' shortcomings.

A 1033 exchange is specifically for involuntary conversions and catastrophic loss situations like yours. 

Unless it's a catastrophic capex related issue, the need for a capital call does not come up overnight for sponsors and neither should it for LPs. 

That's still relatively low unemployment and won't be catastrophic.

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

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

I understand your perspective and will do my best to prevent catastrophic failure.

For the person mentioning healthcare a change was made I believe ( cannot say for sure) that if you get catastrophic care coverage then you are compliant now.

This is one of the reasons that I am focusing on a 4-plex, because if one unit stops paying, it is not as catastrophic as if I owned a duplex, or worse a single-family.