Going private money will already cost you more $$ in closing costs, points, etc - but they should ONLY collect $$ if the loan closes.

Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

@Collin Hays@Jon Martini agree that tax considerations shouldn't, by themselves, drive business strategy. 

That's three months of mortgage and utilities, the cost of flooring, and the cost of painting.

You've given me some solid pointers/items to take into consideration for future deal analysis, so thank you for that.

I feel like having such a low payment and rate make it stupid to choose selling the house, but since I haven't been in this position before, I thought I'd ask here. to d The other consideration you would want to consider is your VA entitlement if you are hoping to buy the next house with a VA loan.

@Earl White rent control and relocation costs equals NOT landlord friendly in my opinion.

Now, you are asking can you use a Gap/Transactional funder for the downpayment and closing costs? 

Investing locally in the Bay Area will come with higher acquisition costs, but appreciation can still build wealth long term, so don't be weary if you're property doesn't cash flow right now the bat.

Are there any unique considerations or red flags you look for compared to the traditional rental process?