I want to mitigate risk as much as possible, but since I'm new, I may not now exactly what the right questions are to ask.

I think those are very real risks - but I think they can be mitigated to some degree.Once we have the new pastor housed, I can actually see MFRs becoming a very different kind of mission outreach.  

A few mitigating factors to reduce the risk of the loan dying in committee:1.

How does one mitigate this risk?

So if you want to move forward with them think about how to mitigate that risk - co-signer, higher deposit, how long have they held their current employment, how long have they lived in the area, etc.Did you run their credit, or just take their word for the N/A? 

From a lender's perspective, the purpose of a 5-year balloon structure is not so much to make more money off of you as it is to mitigate their risk in the transaction. 

The reason that I gave myself 10 years to achieve my goal is because I have a day job that limits the number of hours that I can dedicate to real estate; because I have a low -to-moderate tolerance for debt and planned to save for most of my down payments; and because I’m naturally cautious and wanted to give myself the time to weather any setbacks that should arise.How I Did It:Among other things, I ___. posted my intention on BP.listened to BP podcasts and followed the local forums.asked for colleague requests and I followed up on the advice of these colleagues.used savings and HELOCs for down payments, closing costs and repairs.interviewed Florida realtors, property managers and contractors by phone.visited the two rental markets, attended REIA meetings and met with property managers and contractors.Lessons Learned: When buying an older house in Florida, get wind mitigation and 4-point inspections.

Some people attempt to mitigate this risk but buying a basket of stocks called a mutual fund.

Discussion of the tax consequences of rental income that goes into dedicated funds for vacancy, repairs, and cap ex, and whether there are ways to mitigate this.

However, investing for cash flow is the best approach to mitigate your risks of losing capital.