The 2-3% points in extra cost are worth it if you plan on using as I described above because the use would be for a few  months at most and due to that short term use you can survive a rate adjustment up.But, if you have no plan to payoff the debt like when using for a down payment on a long term hold why pay the extra cost for flexibility and have the additional risk of the adjustable rate with the amortization looming when you can get a fixed rate second mortgage. 

It's usually best to talk with your neighbors about your plans and get their support as one of the variance tests is that the requested relief does not cause a public health issue or alter the essential character of the neighborhood.Try googling "tests for a variance in [your state]" and talk with your local zoning department.

Some other factors to consider - How long are you planning to hold this property?

@Olga DaiselI think we are lacking some key details of your plan.

When you sell, interview as many as you need until you feel very comfortable with the one you decide to work with.real estate is a big investment, and for me it's long term, I don't want to have buyer remorse because someone isn't as knowledge as I like.when I was younger,  I was more willing or less experienced,  today I want the same level of knowledge as I offer when I help someone with their tax planning or when I prepar their taxes.....Show me your high level of knowledge,  you are hired.

We just acquired an existing duplex in Fort Lauderdale and planning on tearing it down and build a new duplex instead.

Also, some of you will need a little pushback against Naysayers who will encourage you to stick with your Qualified Plan.] 

Nor can they see any construction plans to assess true value.

You went in and showed all your cards without plan B.

Hey Jacob, do you plan on expanding the portfolio?