The most obvious risk, the lender in 1st position can call the loan if the property is not owner occupied so you need an exit strategy for that scenario.

Some brands today will have what is called a concentric kit and this is an all in one which will mean most of the time it can exit right through the old exhaust penetration through the roof, or it will mean just one hole would be needed to be made through the side of the house.I agree that most companies will charge a bit more for 90% furnaces as the bigger brands will charge more for the units and the labor is a little bit tougher.

When you sell are you exiting the real estate market or moving the properties into a 1031 with more residential or switching to commercial??

The problem with cash out refinances is they are harder to get from a bank and hard money lenders usually won't do them and if they do they won't go longer than 12 months which isn't enough time for an exit unless you're flipping it.

Have multiple exit strategies.

Though the LP is figured on 30 years, its 5 years balloon with an exit clause after 5 years, we shoot for the 6 - 18 month timeframe for closing.

And here’s the bigger issue, most experienced investors will tell you never get into a deal unless you have 2 or 3 exit strategies.

Please understand, I'm not telling anyone to exit the equities market never to return.

I am not an expert note investor.I do have friends that are and the first thing I would do is define what notes you are trying to go after and what is your hold and exit strategy for them??

The downside is it will be less "standard" of an agreement if you wanted to have it bullet proof from a law perspective (unless you hired a lawyer to draw it up).In either case I'd recommend trying to cover the unexpected like decision authority, exit options, dissolution, etc.