( this is cautionary because the lender wants to mitigate risk.

I do know people buying in the Bay Area who are doing STR or MTRs to try to mitigate some of the negative cash flow issue. 

The cash out hit can be mitigated by going for a lower LTV, but people doing cash out refis rarely want to do that.

In talking with those investors, there wasn't an exact $ amount they were protecting, just trying to mitigate a suit being tied to the entire portfolio. 

Consider implementing flexible work arrangements for tenants, such as staggered hours or remote work options, to mitigate the impact of limited parking.

@Justin GoodinSwitching to commercial multifamily investing can indeed offer several advantages and mitigate some of the challenges associated with single-family rentals.

I’d love to know more about the risks mitigations, sourcing, and analyzing of this deal.  

A 401K loan would probably be your best bet since any interest you pay on the loan usually goes back into your 401K account so it's essentially interest-free.If that's not an option here's an interesting article about different funding options using retirement accounts: https://www.moneycrashers.com/401k-ira-withdrawal-...I'm not a tax or accounting professional and you should probably talk to one to get the best mitigation of potential tax liabilities.

You might need to see about a full mold mitigation

That helps mitigate the noise and visual impacts.