There are very extreme situations you'd encounter in order to do a double close such as original seller doesn't want a third party ( this can be mitigated with some negotiation), you don't want the original seller and end buyer to know how much you're making, and you want to loose a lot of money.

And the topic has been covered extensively here on BP so I don't want to rehash what others have already written.I will say, that if you're actually living in the property I think you can mitigate some of the downsides/risks because you'll constantly have eyes (yours) on the property and will know what the tenants are up to.It's always good if you can get parent co-signers, and also if you have a choice lean toward grad students over undergrad.

I think market selection can mitigate the challenges of day-to-day operations in a small town.

Throughout my career as a lawyer, real estate investor and banker I have had a hard and fast rule, if a deal went bad I would move quickly to mitigate the problem and move on.

If you are set on BRRRR-ing, then make sure you find a fantastic deal, and have many mitigation strategies to bring down costs, and exit options (renting the property even with high interest rate debt in place still produces a positive cash flow). 

Owner financing can be a great way to mitigate near term taxable gains or allow for time to find and develop a 1031 exchange plan. 

My suggestion is to add at least 25% to the cost of the foundation repair as mitigation to the problems that will come from the foundation repair.If anyone has more experience with any of these, please correct me if mistaken.A rule of thumb for a "quick and dirty" pier and beam foundation estimate without engaging a foundation contractor...yet:Take the floor area and divide by 49.

Chances are if you go into the branch, they'll most likely call someone in the loss mitigation department but they may get you through to the proper individual faster.

Or if you have a tenant/buyer in place and the bank invokes their due on sale and subsequently forecloses on the seller, you could end up being sued by the tenant/buyer.A lawyer experienced in creative financing can help you mitigate these risks, for example making sure the buyer and seller both sign affidavits accepting the clearly spelled out Due on Sale risks, and making sure the contract with each party includes legal remedies against you if things go south (remedies that are better for you than being sued).On the other hand, if you're in a state that takes 9 or 12 months for the foreclosure process to complete itself and you intend to rehab and sell the house in a strong seller's market, Sub2's can be a great way to significantly reduce the cost to acquire the property and you'll probably be able to rehab and sell the property (and pay off the accelerated note) before the bank can complete a Due on Sale foreclosure.

If it has permeated a porous material, like drywall, mitigation may be in order.