That is, your friend is the one who should be speaking to a lending attorney (not a real estate attorney) so he understands what you will be signing and the risks and recourse behind his loan should something bad happen.

Does your lender only do one or the other of f/fYou are correct that paying for repairs before close presents a risk.  

Offer a personal guarantee (reduces investor risk if you have the balance sheet for a PG to be worth anything).  

There is no real risk. 

@Nate WilliamsWith one income, two kids, and limited cash flow, minimizing risk is key.

Screen them to determine a level of risk, and then decide if and how you will mitigate the risk.In this case, the risk appears to be an eviction from five years ago.

As long as he has cash to pay for the lawyers and he doesn't lie to anyone... but his real name is published here in advance.   2.75 might be worth the risks. 

Especially on Wall Street, there is a lot of doom and gloom around tariffs, inflation risks, and slowing economic growth in the US.

Nonpassive losses will shelter pretty much anything.There are some limitations to be aware of: Section 465 at risk limitations and Section 461(l) excess business loss limitations.

Understand your anxiety but remember you carry the insurance TO mitigate the risk.