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!

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

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

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Of course the risks are there that the owner will not renew the lease and start doing it themselves if you are successful.

Obviously, each bears certain risks, and usually the agent would advise on these topics in the beginning.

I may explain that while I’d like to buy/finance/invest in his property, I need to earn a certain return on my invested capital for the given amount of risk, and if not able to earn the return on the subject deal than I will on the next deal.  

The loan has a MUCH higher risk for the lender because it isn't secured by real estate.

What are ways your clients are mitigating the risks of losing money in their deal analysis?

If your leasing application process is thorough and well thought out, and if your lease agreement has been well drafted by your local attorney and if it includes clauses that permit you/your property manager enough latitude to maneuver and anticipate undesirable tenant behaviors, both actions and inactions, and you have operational processes which align with enforcement of your lease, then you've done all you can do to reduce this inherent risk of an undesirable tenant.