You do run a "risk" of being outbid at REO sale and "losing" the property, but given that may happen, the "total debt" is your security as you may bid up to that amount where it makes sense, but you may also be able to cash out for a healthy profit at sale if you so choose.

You can lose your shirt...

Investing always looks scary I don’t wanna lose money. my monthly payments are 3k including taxes I am in NJ so property taxes on an acarage house is still high Investing can be scary. 

Too much to lose besides money 

This has been true about every technological change in the industry - those who fail or refuse to adapt lose while those who embrace new tech win.

Step three is learning how not to lose it. 

I see so many new investors that lose thousands, sometimes tens of thousands, every year because they make simple mistakes.

There are some that are great for sure, but I have currently heard terrible stories about people putting money in the last 2-3 years and losing it all, capital calls and losing the whole deal due to bad bridge loans (some coming do very soon). 

On the other hand, there have been many STRs which switched to medium term housing families who were displaced after losing their homes in the storm.

Is it fear of losing money?