The owner financing sounds like a scary proposition (with regards to title, etc), but is something that could be done if one was not in a hurry and consulted with a real estate attorney (which I have).

Risk is modulated by you (for the most part - systemic risk is another bag of cats). 

If you could not come up with the $60-70k to close on the home, then I would consider doing a cash-out refinance or a HELOC from one of the two free-and-clear properties to fund it.Further, because this is the lens that I see things through, I'd go ahead and refinance my free-and-clear properties to redeploy the capital AND create a stronger inflation hedge.So, it really does go back to your personal goals, because ^^ might seem unduly risky, unnecessary, or perfect. 

I could probably afford to purchase two homes to live in and leverage a third as an investment in another market, but it seems like a risky move to deploy so much cash when many people are predicting a cool-down in the US RE markets.Any tips appreciated!

One risky deal gone bad can wipe out out a ton of profit and result in loss of the desire to invest in real estate.

Basically I was made to feel that it was a risky option and that my rights as a seller would be severely diminished.

Your comment about building up experience and capital before you take on more risk is backward. 

Is this a better option in my case, or this too risky/complicated for a newbie? 

Investor loans are a great deal more risky today than ever before.

I have holdings in Robinhood (risky investments) & M1 (long term investments) but I’m debating if I should consolidate it into one brokerage account or not.