I’ve been interested in long term rental property investing for a while now and have worked out a plan of action that I wanted to get some feedback on.My wife and I would like to buy and rehab a property that has an “extra” guest/mother in law house on the property we could live in for the first year in order to take advantage of the easier funding on a 203(k) loan while renting out the on-site guest house as an STR before potentially transitioning to a longer term rental when we are ready to move out.

And yes, all those extra fees are real. 

Before Obamacare, I self paid all doctor visits, medicines, etc. and carried a low cost catastrophic plan to cover hospitalizations, surgeries, etc.

Still looking for "THE" bank, prior experience in banking has made me extra particular in the qualities I prefer in my lenders.Thankfully I am under contract so I've used this time to think strategy some more.

@Slocomb Reed @Jake Walroth In response to your all’s ideas to BRRR it, and in addition to Sean’s suggestion of going below market value, after the insane amount of holding costs I’ve had to carry, it really wouldn’t put back much money in my pocket...long story short, it was a bit of a mess of rehab.  

Order a title report, set up escrow, write out the details of how you want the transaction to go and have an attorney put together the paperwork.Another option is for you to buy the house for the amount owed with a carry back from him of the equity you want him to have.

If they earn it you buy the card on your double miles CC to mitigate your cost, if they don't earn it you're probably earning the extra $600 if you catch my meaning.

Then a few extra bucks for a pretty sky and pretty grass etc.

In a lender's eyes, residential rentals (1-4 units) don't carry much clout as far as experience. 

I like the aggressive pay off strategy, but why not just keep a 30 year loan and toss in some extra $ each month toward the principle?