However, that is a joke and it will get made permanent. 10 years and 5% + CPI was just a soft way of introducing it.

Several months later, and his son has not permanently moved out. 

Nothing is permanent, try it. 

Construction-to-Permanent loans are pretty common.

I use both as a RE investor between commercial and residential as both can be used on 1-4 unit properties (non owner/investment occupancy).The pro's of commercial/portfolio financing from local credit unions and community banks are that you can:- talk to a local banker/lender who is interested in building a relationship with you over time and is flexible to make a loan as long as its financially prudent and you show a track record- ability to build a track record with- less documentation scrutiny than a fannie/freddie conventional loan which is more ridged because it needs to be sold to the secondary market so all boxes must be checked to do so (otherwise the loan is unsellable or undeliverable)- is cashflow based via debt coverage ratio or DCR method of qualification (Net operating income / debt service) - can fund to LLC's, entities, and businesses with personal guarantee (PG) usually- can do unique loans like cross collateral or blanket notes across an entire portfolio, can do rehab/construction + permanent financing into one (one time close products), can do soft liens and releasable upon progress on your projects so you can leverage equity with temporarily encumbrances, unique disbursements on credit facilities,etc Hope that helped compare the cash out options.

FHA defines luxury items such as outdoor jacuzzis, tennis courts, outdoor kitchens, murals, new swimming pools, and items that are not permanent fixtures such as antennas or satellite dishes.

They were financed through a local credit union and local bank with construction to permanent loans.

The goal of this again is to add extra buffer and have another rental stream in case some unforeseen circumstance comes up (rents drop significantly, remote becomes a permanent thing, etc)Questions to those who own property in Pleasant Hill or surrounding areas: -How realistic is to breakeven with mortgage+other expenses with what we'd be able to get with rent? 

Every lender is trying to sell me on a HELOC but I'd rather have a construction loan that rolls to a permanent upon completion.

COVID has certainly changed the work from home situation in the short term and it is very likely that the shift will be permanent for many industries.