If not, then assuming that someone is in a financial situation that can afford a potential mishap, then would you say that BRRR is hands down the way to go, or am I missing something?

Getting pre-approved you'll know how much you can afford. 

It's a more affordable market and lower property taxes, so you may actually have a chance to cash flow.

These are becoming very affordable from retailers like Home Depot and Floor and Decor, and they really set you apart from builder-grade homes!

Many successful investors started small, such as with house hacking or buying affordable properties to rent out.

It was massive, around 5,000 sq.ft. and I remember thinking “how are we going to afford this?”

If there is a large amount of equity, one party may have to buy out the other - if they cant afford it/cant qualify, then the property is sold.I deal with this frequently with mortgages. 

The situation you are ultimately trying to avoid is the one where: the borrower defaults, you start foreclosure, the borrower fights the foreclosure and says they didn't understand the loan / could never afford to pay it / you didn't follow the consumer rules, etc, then the judge asks if you followed those rules and you can't show that.... 

Because it has to, it's operating on a razor slim margin and can't afford the issues. 

We aren't the cheapest place but we are affordable for the size and I want to keep it that way.