I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

Over-budgeting is critical to ensure that renovations don’t eat into your profits.Market Fluctuations: If property values in your area do not appreciate as expected, or if you face a market downturn, the amount you can refinance for may be lower than anticipated.Financing Challenges: Securing financing for the initial purchase and rehab, as well as refinancing after the property is rehabbed, may be challenging, particularly if the property is located in an area with fluctuating values or if the rehab work doesn’t immediately improve the property’s appraised value.Tenant Risk: Rent collection and tenant management can be unpredictable.

Although the study may increase the gain, the gain may be taxed at a much lower rate making it a beneficial investment.If a property is purchased with the intention to flip or own for a short period of time (less than 3 years), a cost segregation study may not be significant.Overall, as long as you intend to hold the investment property for greater than a year, the benefits of a cost segregation study should be considered.

Business owners won't want to get tied up in litigation and if there is a good chance they will lose, it is easier to simply follow the contract.How would that work with a lower-end tenant? 

Lower than that?

Appraisers are using MLS data and often it is lower than actual rents. 

Typically, higher income areas have lower crime, more amenities, better schools.  

I might put 2 o 3 properties per LLC to lower the amount of LLCs and fees.Question: Why is preferred to use a warranty deed, instead of a quit claim deed?

The contributions are lower so it takes a while to build, but once you do, it's tax-free investing. 

If your current lender is open to restructuring, you could negotiate better terms (lower rate or extended term).