The sponsor's largest source of revenue is in the promote, which in most cases isn't realized until the sale. 

The biggest impact will be interior paint, trim and doors, upgraded fixtures, bathrooms and kitchens. 

They claim to be storing lithium batteries for power production via AI for PG&E but they claim their goal is to be the "Biggest Lithium Battery Storage Facility in the World".

So condo's can be a good deal if they are in an area that has a lot of vacation rentals and the municipality is all about tourism and space for visitors to stay.The biggest issue is the HOA.

What are the biggest risks associated with fix and flip loans, and how do you mitigate them?

I think #2 is going to be the biggest issue here.

Thats a nice chuck of revenue even after repairs and vacancies.  

My biggest suggestion is to go meet with the city in person as that is much more effective than calling in.

I think the biggest negative right now is the amount rentals in the area as the investor focus has moved to this area now.

Biggest question on my mind is when all those funds that were paying over par for loans a few years ago, going to rise to the surface in insolvency.