Depending on these answers one lender who charges 3 points could theoretically have lower total transactional costs than a lender who charges only 2 points and its important to understand all fees associated with each lenders origination process. 

Another option I forgot about was to just cash the policy out.

Totally agree , and when a home inspector looks at a house built over 100 years ago and writes a report based on current codes . 

Is that 25% down on the total construction costs when you choose to break-ground? 

What makes 100% total sense to tenant does not always compute with what you need to be successful as an owner....and #1 in that field is collecting rent.

Here's a framework I’ve used with clients and in my own deals:Understand Your Total Investment:Break down your actual contributions: $40,000 from cash, $50,000 from the 401k loan, and any additional transaction costs.

https://www.har.com/content/department/mlsHouston Real Estate Highlights in November, 2024:-Single-family home sales increased 6.0 percent year-over-year;-Days on Market (DOM) for single-family homes went from 48 to 52 days;-Total property sales were up 3.3 percent with 7,750 units sold;-Total dollar volume rose 11.1 percent to $3.1 billion;-The single-family median price was up 1.5 percent to $329,900;-The single-family average price climbed 4.1 percent to $418,903; -Single-family home months of inventory registered a 4.4-months supply, up from 3.5 months last November.

I owner occupy the home, renting a room to a friend at $650/mo, and the lower unit rents for $1850/mo - total rental income of $2500/mo.

Totally agree.

Hi Renee, I totally get where you are coming from.