A law suit from a tenant can put your other assets in risk if they are inside that LLC. 

And is there risk of the bank changing the rates on an assumption?

It's really hard to predict where regulation will go and it is indeed one of the risk factors for all investments.

I think one of the biggest risks you face with Cash Out is interest rate risk.It's really difficult to predict where interest rates will be in a 2-5 year time period, so it can also be challenging to model out future mortgage rates.

Each potential buyer has come to their own conclusion that it would be too much hassle and risk to manage in this fashion vs a traditional rental even though the average cap rate in our area has been half that at best.

By focusing on incremental growth over decades, it mitigates short-term volatility while building a foundation for sustained impact.How This Model WorksLeveraging Time = MoneyTime is the ultimate hedge against risk.

Prioritizes maximizing cash flow, potentially with higher risk or management intensity.Remember, cash flow isn't the only factor!

Agreed with the other comments about the higher risk with HELOC in this particular market.

One great thing about fix and flip loans is that there is no early payoff penalty, so the original lender's commission is not at risk!

There are risks relying on a single OTA; too risky for my liking.