5 Year Loan with a Balloon? Too Risky?

[James G.]

Hi BP. I want to ask of everyone’s opinion on something that seems pretty risky. I’m a college student (no income) and owner financing is one of the few ways that I can purchase rentals. How does everyone feel about a 5 year loan with a balloon payment at 5 years? I’ll have a good job (engineer) in 1 year and I could refinance within a year and a half of having the property under my name. Can I do this? Is it too risky? 

I looked up that you can’t refi with a “federal tax lien.” Would the original owners have a lien on my property after closing until all of his money is payed (if yes, how would I refinance)? I know the market could crash any moment. Is this a bad time to do this? Or since I am so young, should I just go for it and really reach my full potential. Thoughts?