Your risks are having the funds locked up for 6+ months (assuming you keep it in your own name), not knowing what the appraisal will be (ie how much you can take out), and the future interest rate.Run the deals for your best and worst case scenarios- do you like the cash flow after the refi if you get 75% of $10k less than you think it is worth at 6-7%?

Worst case if something happens to the developer, you would have the land.Reality is at this time supply and demand are in favor of sellers (developers).

@Geoffrey Serdar, @Michael Ealy maybe just provided the worst advice I've seen on the forums in at least 20-minutes...anyway, unless you are a fan of litigation and an ensuing fair housing violation, you need to honor the terms of the lease...if you evict in a retaliatory fashion you're walking into a hornets nest.

Sorry Paul, USAToday picks Arkansas City as worst? 

By far the worst part of being a Landlord is getting the place rented. 

and hoping for appreciation.Since these properties are not that expensive ($280,000 to $380,000) I feel like I can put 20% down and I can handle not been able to rent it for a few months (worst case) without going broke.I’m still learning how to run the numbers to understand if these are good deals but I wonder if the overall approach to start with is good at all?

See the neighborhoods that you are considering investing in, and see what locals think about best/worst areas.

Go for it bro, the worst thing that happens is that you fail, and at dinner point we all fail.

I'm either making the best decisions I've ever made in my life, or the worst!

What are some worst case scenarios?