If tax rules come back with 100% accelerated depreciation all of our costs except buildings could be written off in year one.Just part of the risk of developing properties.  

We did consider/evaluate that option, and have done multiple flips, but at those points have been under contract since New Year's Eve and carrying costs for another 2-3 months without a guaranteed sale is not the risk we want to assume.

However, interest rate risk is a key factor—if rates rise or lending conditions tighten, refinancing may not be as favorable.

Taxes will be higher for you but less risk.  

Run the numbers and the risk to decide what works for your situation.

We might be naive, but we don't see huge risks.  

Are there any risks or benefits that I'm not considering?

Starting with something near your market that you know the area, can drive by the property and meet people in person will get you more comfortable with the risk of owning property. 

To that, I would answer: a lot of creativity, a lot of hard work, and a lot of luck while taking on a lot of risk. 

The longer they stay, the greater your loss AND the greater the risk that you will never recoup YOUR loss.