Their clear incentive is to bet on falling interest rates between now and debt maturity.A small handful of owners are forced to sell due to a looming balloon payment that a refi won't cover, but you're not going to find one of those by driving the market when any commercial broker can just look up properties on that basis and start making calls. 

Even with potential vacancies or slow periods, the demand for rentals should keep things stable enough to cover expenses.Ultimately, I think Memphis is a great place for your real estate investments.

The sale proceeds likely won't fully cover my loan.I have a few questions: What documents will I need to complete the buyout of the first lender?

From what I’ve read in The Economist, short-term construction loans or hard money financing could be a great fit to cover the $90K needed.

This fee covers all other services from us including underwriting, appraisal, legal, wire transfers, etc.

What surprised me is that USAA covered all of those houses.  

There is statutory, and as you pointed out, now Fannie/Freddie guidelines, that exempt many transfers from being subject to the Due On Sale Clause...asset protection/estate planning purposes are covered.

See picture above!  

And all the tenants' security deposits and all the buyers'Earnest Money Deposits don't need my asset protection, as they are not my funds, and are certainly not covered by any of our Umbrella Insurance Policies. 

By providing the necessary funding and covering renovation expenses, we ensured the project stayed on track and within budget, leading to a profitable outcome.