Interest rates are expected to keep rising a bit due to the expanding/recovering economy. 

It seems that while AC got hit hard post 2008-2009, prices haven't really recovered much.

Just wait 5-10 years until most areas recovered and don't sell.

If he defaults, would you be prepared to foreclose on his house to recover your money?

No job means no safety net so when the flip hits the skids you will not recover.

The  CoCR tells you how quickly you will recover your cost (how much you spent out of pocket) on a property. 

You will have saving after recovering points in certain time.

and the title company, the fraud was traced and all $67,000 was recovered.

Eventually the LPs sued the GPs (mostly because of me) and we recovered the principle amounts plus legal fees but it took almost 10 years to get the money back.

Yes, you can charge them, and you can sue them, but you can't recover 100-year old woodwork original to the home if someone decides to tear it down and replace it with new plastic foam board molding.