Like any measure of risk, that is highly dependent upon your risk tolerance.

@Shu Zhu I think it would depend greatly on risk.

@Jorge Ruiz If the loan is closed within six months of purchase, even paying a private lien like that, it would actually be priced as a cash out refinance (delayed financing), which typically carries a slightly higher rate.If after six months, he probably has a shot of refinancing as a rate/term which is slightly better pricing.

That way, if a buyer comes back with a complaint about a flip you sold them years ago, it will not put to risk your other flips or the assets holding.6.

Best advice is to visit the property, and make sure you get your professionals in there so that you can make a risk based "informed"  decision. 

Yes you'd have to research and yes there's more risk.... but the deals can really make up for it.

I understand the risk to that and feel as though I have accounted for that in my insurance planning. 

That is a personal choice based on your appetite for risk. 

Almost no bank will lend on it, so the buyer needs to purchase in cash or have the seller carry.

Obviously, individual preferences, goals and risk tolerances play a key role.