My question is, if the person that was bit chooses to sue, am i not involved since it happened prior to my acquiring, or are you still open to risk.

Syndications are similar to REITs but, on average, have higher risk as they are chasing lower quality assets. 

it's all about your risk tolerance and overall goals. 

If he works outs well, perhaps move to paying per task/job.I would make sure to have an independent contractors agreement (ICA) signed, ensure that he has insurance (at least liability) and get him to sign lien waivers upon payment.If he doesn't have workers comp insurance (and you don't want to get it to cover him), I wouldn't let him do anything that is "high risk"...

Risk aside, bringing the cash to the deal is the easy part.

Don't in any way try to minimize the risk with the seller.  

Anywhere on the risk/reward spectrum is fine, I'd just like my eyes open to the options for now :)

It all depends on your criteria and risk tolerance.  

I'm pretty risk adverse in those things so as unlikely as it would be for the mortgage company to find out I switched out of my name I really wouldn't want to deal with a due on sale.

As far as what happens when the balloon is due, I’ve put down 35% to mitigate this risk.