Or perhaps we mitigate that risk with properties I would be able to buy outright in cash in the event anything happens, especially for our first property  

Something to the effect that we do not have any, and if any appear after the first 30 days of move in, you brought them in are liable for cost of mitigation. 

It serves as a risk mitigation strategy, providing a financial buffer to offset negative cash flow and acting as a reserve for unexpected expenses.Remember, every investment decision involves trade-offs and considerations.

But with $40,000, you can buy, renovate, and hold or buy, renovate, and flip (turnkey to an investor or to an end user).Obviously, there are some risks, which can all be mitigated with some due diligence.

It makes you more competitive if there are multiple buyers competing for a house, many sellers are reluctant to go under contract unless they can mitigate the risk of not closing due to financing problems - they do this by only signing with folks who are either pre-approved or pre-qualified.Another reason for getting funding lined up first is that you will be way less stressed between going under contract and closing.

There are ways to mitigate it and let it out of the ground.

If all subs have GL and workers comp and I have an umbrella policy for my llc does that mitigate most of the risk?

Those seem like strong mitigating factors.

I cannot confirm that any bank is lending during the COVID-19 outbreak. 

Any recommendations / advise on pursuing a full scrape vs. mitigating damages after a house fire?