Property ARV: $450kTotal in: $350kMonthly rent: $4000Monthly taxes & insurance: $530[Loan 1] (via broker)75% LTV1.5% origination fee ($5062)Other fees: $1595 underwriting + $1295 processing (=$2890)Interest rate (floating): 7.25%5 years PPPMonthly P&I: $2,278Rent - PITI = $1,192***If appraisal comes back high enough, may be possible to do 80% LTV at 7.99%[Loan 2] (direct lender)70% LTVNO origination feeOther fees: $1,395 underwriting + $695 processing (=$2090)Interest rate (will not change): 7.375% 5 years PPPMonthly P&I: $2,152Rent - PITI = $1318---------------------------I really like how there's no origination fee with lender #2 so I get to keep more of the money I pull out.

Not all states allow bonds to be floated for private development though I know Oregon Does NOT. so that would have to be addressed..

(don't think we have time or knowledge to pursue that) . alternatively the lender has asked us to work with a commercial lender.. we have not done any commercial loans so far, but basic research provides core diff is the 30 yrs vs shorter duration 10-15yrs in commercial + ARM (floating). 

So now are you getting my drift?

In response, the vacancy rate will drift upward by 0.3 percentage points to 4.4%.

However, I did not do enough due diligence for myself understanding they only had 2 year rate caps and floating rate debt. 

I am just looking for others who may have experience with this type of investing and if in your opinion is it worth potentially floating the house for almost a year until next school year?

You may be able to get away with a monthly payment, but that's a lot of labor your cleaning staff needs to float until payday.

for Zero Risk to capital, move cash to your brokerage and buy USFR, paying 5.4%, must pay federal tax but no state taxes, it holds short term US treasury floating rate notes, no FDIC needed as FED can print more money to pay you offfor Mild Risk to capital, buy BKN, BlackRock municipal bond fund with 20% leverage, pays 5.5% tax free, and if 10 year bond yield falls 2% over next year, likely with rate cuts coming, then this will appreciate by about 15%for Mild to Moderate Risk to capital, buy EDV, Vanguard 30year zero coupon US treasuries, pays about 4%, taxable and if 30year bond yield falls 2% over next year, likely with rate cuts coming, then this will appreciate by about 60%Don't put into stocks if you need the cash in <3 to 5 years due to stock volatility

i actually just spoke with them and we discussed distribution track record from both Fund 1 & 2 and they had mentioned to me that they had paused distributions due to the floating rate structure that they used in both funds.