The concept is called defensive investing. 

Good lord, you people take things too seriously and come to people's defense as if they have been offended in some way.

Because my current job has been very tentative (defense contracting in a large corporation on an niche system) my motivation has been to convert 401K funds to higher performing results that provide CASH FLOW to cover our monthly living expenses (mortgage, etc in California).

Lots of people moving there now due to job growth in defense and space.

I see two modes of "defense" in buying LTRs - cash flow and equity. 

Lastly, I hope I am not coming off defensive, which I probably I am, but I see some bad information on this thread and I as I mentioned earlier, I shoot it straight and one of our core values is to be transparent as possible. 

Their defense is they couldn't see it on inspection (although... they actually didn't do a home inspection), so there's no way they could have known.

Keith, not that Bill G really needs my support, but in his defense, your initial question does read like you are trying to pull a fast one on the bank.  

MAKE all your tenants get renters insurance and provide you proof as a 1st line of defense.

Even within the stock market, there were defensive stocks in which to hide.