All programs have LLPAs but that's more so any bank's individual guidelines and overlays to specific product pricing.

Risks: rates go down and you have to pay a prepay of 2 or 3 %; you have to sell and pay the prepay; rents decline & you can't make the payment like any other type of loan; cost upfront a little more than conventional; need to find experienced broker licensed in the state where subject property sits; servicers are bulldogs. 

A 1031 exchange allows you to defer taxes by exchanging real property held for productive use in a trade or business or for investment for other real property of like kind, which is also to be held for similar purposes.

Depending on the property far more than the acquisition price may be required and that will also dictate the best loan product. 

The founder appears to have been involved in businesses outside of real estate: ‘My dream is a locally made grooming products business’ | People | nashvillepost.comSo it does not appear there is a lot of track record there, but those are questions I would ask.

If the proposed loan is too risky because (1) chance of default is too high and or (2) cost of foreclosing too high or time it takes too long and we would otherwise decline the loan, we might offer to purchase the subject property for a price equal to the loan amount.  

Curious how this will play out in the courts (granted it's LTR) and affect pricing products used for STR such as PriceLabs (which I use but have to seriously manually adjust for very specific reasons).

@Dennis KnappJ Scotts book on estimating rehab costs is a great start. https://store.biggerpockets.com/products/the-book-on-estimat...Here is a "general" rule of thumb for my market in Jacksonville, FL.

Lenders have been accommodative for the last couple of years because they were facing a declining market with no buyers. 

Here's an example: https://www.schlage.com/en/home/products/JDE265SUTFFFSTR.htm...