In judicial states in which the foreclosure process often takes a year or more, this not only generates income, this also typically mitigates property deterioration, vandalism, and other costly issues which diminish the value of abandoned properties which remain vacant for extended periods.

You have to buy Stream Mitigation credits if you build a pond in a stream way. 

WikipediaLow crime rate: Never invest in any city on this list: The most dangerous cities in America, rankedLow operating costs: Good indicators of a pro-business climate include:Property taxes: State Property Tax Rates - Rocket Mortgage.State average insurance cost: Insurance - ValuePenguinState income taxes: Tax FoundationLow risk of a natural disaster: Natural disasters can devastate your property and the surrounding community, leading to job losses and the closure of shops and businesses.

If you had a mold remediation company do all the work and mitigation, send the threatening party the reports and clearance.

I also think that if I can make all of my money back in 4 years with a cash out refinance, what is the danger?

The only real difference is you'll need to purchase flood insurance on the property during the project and all good lenders will make you do this to insure your risk is mitigated.  

Various legal setups can  mitigate a large part of this risk.  

A solid property manager could have mitigated these losses most likely.

I have done small things like switch from glass wine cups to acryliic ones that look like glass and take a damage deposit of $250 that helps mitigate small things breaking that are over $50.

I don't care who teaches this stuff its fraught with danger to think you can take title and keep someone's mortgage in place for years and years stuff happens and when it does the original seller gets HAMMERED.