You could hire a plumber or electrician who turns out to be serial killer or rapist, it doesn't mean you are liable unless you knew and ignored the danger. 

In reality maximum leverage on all units is dangerous unless you're loaded with liquidity elsewhere, so the LLs I know keep a mix of leverage & cash units. 

I think you will find a lot of court cases that will clarify the danger of buying a foreclosure and then letting the seller stay in the property and selling it back to him.Can an Investor Buy Your Home if You're in Foreclosure and Sell It Back to You?

Meaning, timing the market dipping which is a dangerous game to play I realize.Thoughts @Andrew Syrios @John Teachout

When rates are going up, HELOC method is even more dangerous because you are replacing low rate debt with higher rate debt. 

It's probably less dangerous which is good, since I'll be living in the property for a year at least. 

The biggest downside, IMO, is that since it's close to the coast, the hurricane danger is magnified and consequently so is the cost of insurance.

I choose only to allow small pets because it attracts quote a few more interested applicants who have trouble finding a suitable rental while side stepping the whole issue of dangerous dog breeds. 

Over-leveraging is wildly dangerous in this market we are now entering and beginning. 

You might want to visit Detroit if you have not, and drive around the different streets in the city- but I warn you it is very dangerous in many parts.