There is less risk involved in the cheaper properties .

Private lenders are not affiliated with private organizations like the American Association Of Private Lenders, and they all have different risk tolerance. 

I think one of the biggest risks you face with Cash Out is interest rate risk.It's really difficult to predict where interest rates will be in a 2-5 year time period, so it can also be challenging to model out future mortgage rates.

Payments stay lower, cashflow better and it'll boost your balance sheet not to mention lower risk when things go awry. 

You’re able to learn the basics of a real estate investment with lower risk and build equity at the same time.Because you're in the military, you'll be able to enter a property with 0% down which means you can leverage your money way more effectively. 

There are risks as you are tying up your primary residence in the project.

Just like any investment, it has risks.

The risk analysis and mitigation is all over the map.We have done very well over the last 15 years.

But then I am taking risk , the contractor doesnt share in the reward .

Dominic,  Thanks for the thoughts on the increased risk of damage to that type of home.