But we had/have the cash reserves in place to float them for a year if we needed.

Due to the fire the asbestos is floating in the air and is considered hazardous.

Only if the lender offers a free float down.when you lock in your rate,  the lender is literally taking money from an investor, and setting it aside to fund your loan,  and that investor is locking in the return they sre getting on that money.

I am wondering if donating rent is a viable idea to float with the partnership.   

One of my good friends fishing buddy owned a few dealerships so i got the inside scoop LOL  and I fished on the Deschutes with the head of Lithia one year they are neighbors at broken top. we did a 3 day float about 10 straight years until we got to old LOL.. 

Otherwise I think rates will drift in the current area or even lower depending on economic recovery speed. 

You want someone that has a few crews, and ample work so that they are typically bonded and can float their workers due to the "get paid as you complete" draw process of a renovation loan.Let me know if you have any other questions!

But it floats based on WSJ Prime.Years ago we did one but it ran 6%.

This would solve your lack of immediate funds to float this deal AND will offer you a much more valuable property with a NNN single tenant lease in play. 

One other thing to note on 203K, if you have the money to float each of the draws, it will go much smoother with your contractor.