This is commonly called a reverse exchange or a construction or improvement exchange. 

The tenant toured my place, said is employed (+i googled) , came across to me as very polished  and came to tour the unit with her mom.

A common issue is supply and demand effected by population changes, construction, economic issues, the job market and location.Personally I haven't seen vacancy issues at this time,  but I have gone through cycles of vacancy issues.

That's my best advise on it.It is quite common to have issues with permitting or with the removal of tenants so the lender will understand if that's what's going on.

.- If still skeptical, ask for personal references from employers, community leaders, or other respected individuals who can vouch for their character and reliability.By using these methods, you can make a more informed decision about renting to this couple, giving them a fair evaluation while also protecting your interests as a landlord.

Familiarize yourself with the types of properties commonly financed through private money lending and the current trends in your area.

I was on the HOA board of a luxury building in San Francisco and you would be surprised at how many people will let their dogs pop and pee in the common areas (killing very expensive plantings).

Garden-level or street-level ADUs are common in New York multifamily properties.

Work to save a lot of cash (Which I just reduced my 401K savings rate to only cover my employer’s full match so that’ll be a couple hundred extra each month and I’m about to fully pay off my car in six months and that’ll be an extra $500/mo.

Myself and family truly loved the property and house; just want others opinions on if this may be a mistake to proceed, or does this appear common practice for the age and location (upstate New York).