Tried to mitigate risk by using the AHS which did come in handy for potentially expensive AC repairs which I didn't need to pay for. 

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

My dad owned a small commercial property for nearly 50 years without an LLC, though he looked into it in the 1980's and his lawyer told him to forget it.As to mitigating risks, the main one is insurance, good landlord insurance with umbrella, preferably $2 million or greater.

The concept you explained though makes perfect sense in applying funds received to utility payments and then rent to mitigate risk.

I have a new HELOC now, 10 years later with a different bank at 4.05%, used for RE down payments and I mitigate this reality in two ways. 

My second instinct was "How can I structure a win/win deal".I'm thinking there is a lease structure to assume control of the duplex, live there a few months rent free myself, perhaps move in tenants into the other duplex unit, in order to mitigate the holding cost expense for the SFH after closing.Master lease option?

(I may have done that when I first got started) A home inspector is there to look for problems with the structure, fixtures, and utilities and provide suggestions on the best way to repair or mitigate them.

The lesson here is that Every bank has its own personality,  investment strategies, and risk mitigation levels.

He posted about his returns and buying properties in Indianapolis close to the median value for that MSA and how that has allowed him to cash flow well AND take advantage of rising values/rents while mitigating the risks of lower class properties.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.