Fires aren't really an issue unless you live in the sticks.

The biggest issue, is what IF rates do not come down?

Hi - I have a second / vacation home in upstate New York which had an issue and is under maintenance for almost two months.

Yeah mate,Too much outside influences and logistical issues with new construction.It's much easier/less risky when you control as much of the process as possible and don't need approval from anyone for "this or that".New build works in other markets but why would anyone new build in 43612, 43613 or 43623 for example when they can buy dirt cheap and renovate for much much less than new build.Just my opinion and there are many ways to skin a cat when it comes to real estate investing 

I post this because I do not see any issues with this type of property.

The 5 year proforma by DEFINITION is based on a whole slew of assumptions about a whole host of issues in the future - national economy, local economy, interest rates, cap rates, rental rates, political and geo-political factors.

Should I include security deposits I've received and then forward to my owners in the 1099 I issue them? 

Most of the family and friends are willing to invest with us as we give them a steady return %...do you see any issues with that ?

ALL of these issues can happen locally as well for sure, but if you learn locally the lessons are generally not as expensive. 

Invisible issues hurt you the most.