Second Home Loan for a Rental...would you sign this?

[James Gillice]

New investor here with a question on getting a second home loan vs. a private money construction build loan. the reason being that I don't have the money to put down for the private money.

Would you sign this rider (below) for a build-to-rent property knowing that you are only planning to rent it out? What are the ramifications? Will anyone ever know or care?

This option has been presented to me with assurances that many have done the same with no problems. Is this common practice? No big deal? Or should I steer clear?

What is a worst-case scenario?