A local variable is memory on the stack, that memory is not automatically invalidated when you go out of scope. From a Function deeper nested (higher on the stack in memory), its perfectly safe to access this memory.
Once the Function returns and ends though, things get dangerous. Usually the memory is not deleted or overwritten when you return, meaning the memory at that adresss is still containing your data - the pointer seems valid.
Until another function builds up the stack and overwrites it. This is why this can work for a while - and then suddenly cease to function after one particularly deeply nested set of functions, or a function with really huge sized or many local objects, reaches that stack-memory again.
It even can happen that you reach the same program part again, and overwrite your old local function variable with the new function variable. All this is very dangerous and should be heavily discouraged. Do not use pointers to local objects!