Repairing the sidewalk came down to a risk benefit analysis.

Outside of that, do normal due diligence like appraisal and inspection and you're risk exposure is fairly low.

What are the risks of going down this path?

Without going down a rabbit hole here and overwhelming you, there are also creative ways to buy properties without needing to get traditional lending, but these types of deals are harder to come by and usually come with more risks. 

People with high risk tolerance will have a far different answer than someone who is risk averse. 

The Homeowners Insurance will include Builder's Risk.

I understand why carriers associate Condo/PUD construction with greater liability risk (I am sure being based in Philadelphia, a jury friendly city doesn't help either) but curious which carriers others are finding to price coverage without this exclusion and also price the coverage competitively.This also serves as a reminder to review the coverage when you hire a GC for more substantial or unique construction assignments. 

In SubTo, the bigger risk is on the seller.

If it is someone you know you can give them a straight return as if its a loan - can provide a lower interest rate to provide upside - it really depends on the lender and what are they concerned with and what is their risk profile. 

This deal stood out due to its strong resale potential and minimal risk.