Doing this keeps you somewhat aggressive and let's you take advantage of CoC returns that blend higher. 

Take a look at this case and the vast amount of detail the IRS uncovered.

To protect yourself your job is to uncover them. 

Leverage boosts ROI to a point so those will up your blended return. 

You want to blend in and match the neighborhood.

In that situation my blended interest rate over a 10 year hold can be way higher than the 5.2%.

As we uncover more information about loans, we find that maybe the income doesn't fit (peg 1) and the borrower only has 1 year self employment (peg 2) and maybe they have some credit challenges (peg 3) and on and on. 

Or in some cases they look at so many properties that it all starts to blend together.

Hello BP,I'm now six months into my blended house hack (cash flow + appreciation, its a @Ben Leybovich thing). 

I use the inspection to get a price reduction as well as to uncover issues that may not be immediately apparent.