Typically, off-market sales are common in hot markets where demand outweighs supply heavily, meaning that a home can sell easily without ever going to the public for sale.Pros of Buying an Off-Market PropertySearching real estate markets for off-market properties widens the net of investment opportunities.

I don’t know about the Louisville market, but if you have to pay a bit more for the property than a traditional single family, it should be outweighed by the fact you will have a tenant paying hopefully well over half of the mortgage. 

While these alternatives may come with higher interest rates, the flexibility they offer such as faster closings and more lenient terms often outweighs the upfront costs, especially in fast-moving markets.For example, hard money loans can give you the ability to close quickly on distressed properties, which traditional banks may take too long to approve.

Self managing takes a little effort and some time, but reward far outweighs the effort for us. 

How do you decide whether the potential return outweighs the risk?

The investor must consider whether the potential property value increase or other benefits outweigh this loss.

The benefits far outweigh what you get with a HEL. 

The financial benefit of reducing or eliminating income taxes very much out weighs the hassle and costs of a potential audit.You don't need anything fancy for a time log. 

People can be ok with that if they believe the appreciation in the short/long term will outweigh low monthly ROI.

I agree that the liability may outweigh the potential benefits.