If the "lender" needs for the upside to materialize to be paid instead of strictly pulling down an interest payment with a secured loan for downside protection then that smacks more like a security issue to me.Note that the poster that commented about 3 people, etc. is incorrect.

The one down side to it is if I do an outright sale I can take the income and do a down payment for both a primary residence and an invest property of some sorts(Rehab, Buy & hold).

IMO, 2-4 unit MF's (and condos) are the best part of the market to avoid for investing - they have most of the downsides of both SF and MF, w/ few of the upsides.

Is there any downside risk to having them sign it and the investor recording it post default?

Definitely going to look at the triple net concept as it sounds like a low management, steady return option (just need to learn about all of the downsides - beyond lower return - as it is much easier for me to see risks then benefits in a deal).

Any downsides that your seeing?

The downside of commercial brokerage is the Loooooong lead time before you get deal flow.

.- Assets - you seem like you should have no problem rather your dilemma is probably how do you best utilize and put your equity to work as tax favorably as possible with the most upside and the least downside it seems- Credit - will need to be processed to determine scoring and credit history, will be important- Income - sounds like it will need to be reviewed or may be of concern because to qualify for the duplex you'll need approx 2.25 dollars of gross income for each dollar of monthly obligation.

- One method is 85% cash out using FHA since FHA will allow use of rental income from "boarders/roommates," while conventional financing will not, down side is hefty monthly MI payments but the effective overall rate is still much cheaper than your current of 8% with 3 year balloon - it also depends on how you file your rental income or if you dont file it and take the rental income as cash this can change the characterization of your property from primary, to rental, etc (how loan underwriters will look at it)The above is how I would review this file from from my perspective feel free to add any info about your scenario or PM me if you have any particular questions.

On the down side, if I am receiving multiple offers and your offer happens to be the same as someone who does not put contingencies on the inspection period, I will choose the one with less contingencies.Hope this helps.