As your equity grows, you start losing money. 

Prior to losing the home in foreclosure the previous owner had retaliated against the lender by cutting out most of the exposed electrical wiring and removing the heat and air units from the property. 

Oh sh*t, I lose everything!...

The risk is too high of losing everything.

I would not lose sleep over this.

Do not be surprised if you lose your entire investment and maybe more, if you have a recourse loan.On the other hand, real estate is a forgiving asset class.  

Don't use some compressed 5% cap rat, you'll lose money if you do.

Some investor say well better to go for 15-30%+ uncapped returns and lose it a minority of the time than to only make 10-13% and lose anyway with this latest black swan event.

they will lose a ton of interest on 5.5% loan if we refi with someone else, but it would likely be 7% so its a lose-lose, they will lose our business and it could be in their favor to just drop the abusive term, ridiculous that a conventional loan doesn't let you keep the place after moving out. never saw that coming and this type of "pulling a fast one" is exactly why the other buyer who couldn't be present on closing specified that the power of attorney for signing closing documents was limited to exclude anything unnecessary. 

The LP protects against this as well as losing everything in a potential law suit.