Just seemed like high risk of having a very needy investor for the next 5 years. 

I feel comfortable at least broaching it with her now that I can articulate at least some basic risk mitigation steps. 

Hi,I was just trying to know what may be risks(hidden) involved with private lending on first lien.I hope there must be many experienced investors and lenders here...if you guys wants to share your experience..Thanks 

Paula,What are the risk in down payments opposed to placing the funds in a trust?

Dave Ramsey offers good solid advise for the average middle class slob who can’t control himself but his approach is so conservative in this day and age that you won’t make much for fear of risk and you will save till your dead using his methods . 

This doesn't scare me off, but it might for others depending on levels of risk aversion.

That just seems like not enough to me given the risk that a roof will blow off or some other major problem. 

@Robert Walston The lender I just gave the "green light" to get pre-qual'd mentioned putting 20% down to help lower the monthly payment, but I didn't really question it, as I don't plan on doing that if not required.But something that did catch me off guard was that he suggested I might need to show the (income) ability to carry the entire note, as if there were no tenants.This may not be difficult for a duplex but a 3-4 unit would be.

There are always deals to be had, but as the market gets hotter & hotter, you have to be extremely picky, and usually its the sophisticated investors who can still execute on the decent deals because they have the contacts, the track record, understand the risks, can pay cash & can close quickly.

But the sellers have already accepted my non binding initial offer of $350k and I'm wondering if I should risk lowering my offer?