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But surely there are plenty of stories about solely resi IP investors who lost everything as well? I'm more implying that to someone who does it for real, there are 'built in' risk management (property selection, lease clauses, guarantees, and so on) that non-commercial investors don't know...

Don't you think this conversation resembles the ones where people tell resi IP investors that they're going to be killed by the coming high interest rates and price crashes?

And resi property also has its risks, especially in times when bank lending tightens. To me, the biggest risk with LOE is that it sails along happily for 10-15 years or whatever, and suddenly the combination of a down market and tightening lending means I can't borrow any more, and at a time...

Will a bank consider gains from selling a property every 3 years as part of your serviceability?

Fair enough. I, personally, can't confidently LOE without having a level of equity and LVR where I might as well start switching to living off income a few years earlier.

LOE has two important assumptions: 1) there is future growth to create equity and 2) you can continue to borrow on the equity. Future growth is likely, but it will be lumpy. You might hit a period of years when nothing much happens. There's a risk you run out of equity before the next...