@Robert Freeborn I think that would be a great idea for fewer people to invest in Texas. :-)I think people should sell out now!

There are exemptions and exceptions, but this sounds dangerously like a securities issue.

Are their any dangers or calculation I could be missing with this financing option? 

There are some areas where rents are well into bubble territory when considering as % of tenant demographic gross income; 50%+ is dangerous territory, 55%+ is clearly not sustainable, 60%+ is building for a bubble and 65% is surprise it has not yet popped. 

However, homeowners should be aware of the dangers associated with dropping temperatures.

There are fewer small multifamilies available in my market (south carolina).

And, with an average time on the market fewer than three days (for properties that conform with our property profile), the only reason we can find them is using our data mining software.

If the builder is cost plus (instead of a fixed cost) on something with a foundation expense like that it could be dangerous for an owner/buyer. due to the cost running over substantially.

Which makes for a dangerous investment.This property has an existing Steel building, which we will rent out, but we have to build around.

You wont be able to evict unless the lease is up or they are month to month. 2) I am not sure of your local laws, but in MN we cannot evict right now unless there are unlawful reasons and they are a danger to others (this at least was the last I heard for our laws).