That just seems like a lot of work/risk to get a lower return than you'd get putting that cash in a REIT ETF and calling it a day.I would run away and never look back if I were in the situation you posted.

On a recent one, we needed $7k added back, I felt we had $9500 in clear "one time" stuff, the underwriter came up with $4200 and we had to fight/escalate to get a smidgen over $7k to make the deal work (this was a refi of some other property to save a few bucks a month, not a purchase mortgage, so I felt OK about taking this risk). 

If you’re living in this duplex, and if you’re expecting to pay some of a mortgage anyway, then that’s one easy way to mitigate the risk.

Between 4% and 7%: It's up to your risk profile and whether you think you can make a better return in real estate. 

Educate yourself and learn from other's mistakes to decrease your risk exposure.3.

For me, that's great as it greatly reduces my risk (otherwise, worst case, I'd have to pay him back 50% of what he put in), for him, maybe not so much.So, what do you guys think?

So I would really like to minimize the risk of delays and start with me and my guys doing the renovations.

It have boarded windows in the back and I would deem it as high risk giving the reason it don’t have insurance now.

Each has a place in your tool kit depending on your needs.As for risk of injuries, if you are going to use tools you are going to get injured, a hammer does considerable damage to fingers.

Learn as much as you can about Passive RE investing (strategies, funding, risks etc.) and apply your knowledge - Don't be book smart!!!