I think there are 3 things that give you the most protection from dangers of leveraging:Only used fixed-rate loansBuy properties that the numbers are solid in the numbers (preferably in monthly cash flow over appreciation potential) and in locations where the numbers are most likely to sustain themselves (for example, don't buy in declining markets...https://www.biggerpockets.com/renewsblog/declining-market-risks/)Keep a reserve on hand in case of any unexpected vacancies or large repairsIf you do those three things, my thought is that you have severely mitigated any risk that could come from leveraging (as much as it can be mitigated).

When following the BRRRR strategy, you always want cash reserves for unexpected expenses.

I think the cash reserves have to be enough to cover all unexpected items.  

It will also be easier to handle unexpected expenses with your first rehab if you do not have to worry about loan payments.

The appraisal value will easily meet and exceed what I am paying for the property but according to my appraiser, the house may be considered a C6 property (unsafe) due to a variety of factors including a deteriorating deck, missing electrical outlets, the water, AC and Heat have been turned off on the home since no one has lived there the past year.

What happens if someone dies unexpectedly? 

I own a property in San Diego that unexpectedly became a rental when relocating for work.

Just to cover those unexpected costs if they occur.  

@Hussein Yahfoufi next time you come out let’s grab a coffee and share experiences...I continue expanding my portfolio in Canada.  

So say I found a place, I could rent for $1000 a month, and I wanted to keep 40% of the rent in the account for Insurance, PMC, Taxes, Repairs, an other unexpected things.