If you're confident that you'll be able to obtain a lower rate in 6-18 months as rates fall, opt for the smallest prepayment and points option that you can find. 

I'm not sure you should feel confident about the return on your equity if there is no cash-flow.

That experience can give you the confidence to grow. 

Quote from @Dave Foster: @Bob Asad since you've lived in it for the two years you could potentially qualify for the 121 exclusion, giving you $250,000 of the gain tax free ($500K if married) like @Jeremy Ellis said. 

I’m still in the shallow end of the beach, focusing on helping fund EMDs on deals while I learn to dive deeper, achieve greater confidence to eventually swim with the dolphins and whales.

I also volunteer my time as a board member of the RPA (Rental Property Association of Wisconsin), a non-profit REIA and we focus on education, landlord-tenant law and lobbying on behalf of landlords in Madison.Networking is important especially in the beginning, because it gives you confidence to see other people's success when you are getting started.

I suggest beginning with turnkey rentals as you build connections and confidence.

Public has confidence in economy) and (4) OVER SUPPLY (Due to expansion, supply is now starting to exceed demand. 

The key is feeling confident in who your lending to and do they seem to know what they are doing.

We'd probably have to believe it would pay us high-teens IRR, and would have to feel really confident in the sponsor's experience, construction crew, and local expertise.