And that can be risky in the wrong circumstances.

If you do not have sufficient cash, and subsequent access to cash, all REI gets very risky, and the less money you have the greater the risk.

It's in the contract, but still, cutting that check hurts, and feels too risky. 

This make the deal look worse, because it is less cash flow and you scratching your head, because it became "less risky."

Option 2 would be the least risky to the lender, considering they're underwriting only the subject property for two separate loans (and two closings).

There are some growing pains (20,000 to 35,000+ agents in the last year), but the value proposition is hard to beat.  

I can buy 5 or 6 rentals in AZ for that and have a much safer investment that actually cash flows.If you are doing the deal for "ego" and going to live in the property, I worry about the balloon but I understand your motive.On the other hand, if your goal is to improve you net worth, it isn't a "great" deal and is pretty risky.

In addition, we're either at or very near the top of the cycle and building/developing becomes very risky at this point in time.  

Is this idea too risky due to the high property taxes in Nassau County and Suffolk County? 

is there additional risk? is