All of which can be mitigated with insurance. 

Risk in TeamBy sticking to one market that we know very well and have a proven mgmt. team in place with economies of scale that allows us to mitigate risk factors 2 and 3 (not eliminate, but mitigate).

The only thing you can do now is mitigate your capital gain due to appreciation. 

So perhaps having a strong reliable stream of passive income coming in and being an expert in that particular area to mitigate the risks is most appropriate.I'm at the very tail end of my military obligation, so the first and most immediate goal is to develop some human capital so I can have a good primary source of income and then grow from there.

No experience managing investor moneywhat will happen is if you can get a seller or broker to even work with you .. your not coming in from a position of strength.. to mitigate all of the above you need to have your capital and financing arranged so when you do make an offer you have real POF  Not hey I am going to go try to raise the dough. .and you have financing available ( which could be tough for you being a first time sponsor with no experience)I suggest you talk to some lenders now before you waste thousands of hours looking at deals.what you will find out though is there are all sorts of Ghetto dogs in the mid west that will take a flyer with you .. the nicer performing properties the brokers and owners are going to want to deal with a proven source who has all of the above.

The risk is mitigated because of the substantial equity you have built up.

Ty Etienne, I agree, sounds like a good way to mitigate risk at this point,..What is a usual split in a case like this if I would partner with him?

If the recession is systemic, you can't mitigate out of it.

You can mitigate risk and write only those you are very comfortable with.

With every renter comes a gamble, its your job to mitigate the risks as much as possible.