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?

It is a lot of risk to take on considering your current debts and the likelihood of another move being necessary after residency.If you decide to do this anyway, I would suggest buying the duplex in your name or having behr buy it in her name.

How can I mitigate risk as much as possible and “know” I’m getting the right property to perform this on?

If you won't risk your money or a friends money and won't take it at 6%, how safe is this deal?

Thanks @Carrie Hiner, @Kris Wong and @James Cook!

As a rental investment it is not worth the risk or work load based on you having negative cash flow unless you are in a high appreciation market and willing to gamble.SFHs make for poor income property investments and are primarily a appreciation play.

I know Builders Risk Insurance kicks in once I start the build, however, I'm looking for liability insurance to cover the lot while it is just sitting there.

Investing in a moderate risk income fund should be able to achieve a 10% return on average over time.

@Trevor White  It is generally considered good practice to separate different  risks into different companies.