I would assume that it should be blocked off with some type of decorative tile or something of that nature.

Your best bet is to keep liquid cash and avoid PMI.Never heard of that type of loan. 

Do a search on google, syndication websites, reddit, etc2) research the rang e of return for that type of investment.if the typical return is about 8% to 12%, I would be skeptical if you were getting offered a 24%+ returnBest of luck!

What made you interested in investing in this type of deal?

what type of real estate investing strategy(ies) are you interested in / looking at? 

Although we do have deals on the lending side that dont work but we are not forced into a position to take big loss's like we were when the banks were calling our loans.. this will happen in the DSCR world as all these folks are using same type of debt IE debt that can be called based on the terms of the debt or like you have seen with the syndicators that are talked about on BP max leverage bad debt things dont go right And you have cap calls or projects totally lost. 

However, many lenders and insurance companies are tightening restrictions and premiums for these types of properties.

I think the winter market concerns are really primarily only really worrying if you are looking at a larger SFR attracting families to due the "school year" issue - but other types of strategies I don't think its as much of a concern

And, they limit the type of people. 

It could be worth transitioning to a midterm rental if there's demand for that type of housing in your area, like traveling professionals or remote workers.