Right now its generally as little as 12.5 bps (1/8 of a percent) at most lenders so not really worth it.Regarding the terms you posted - I ran these through our sizing and they look in the ballpark of market, not much better or worse - with some assumptions, our pricing looks to be 8% flat with zero origination fee/broker fee and $1,000 underwriting for this scenario. 

Nick has the best Data with easy to understand graphs and charts for each City, Area of the big Cities, County, State and whole Country with ReventureApp.com and its free unless you want a personal conversation. 

The barrier is the additional complexity - now you are operating two sets of books, and filing two tax returns, and have more operating agreements, more state registrations, etc, need to manage cash better, need to keep in constant mind that your rents need to be a supportable FMV, which may require getting third party certification on your rents so that in the event of an IRS audit, what you have done is supported.In short...the size of the project, and the taxable income, need to be of enough scope to make all the additional costs and annoyances worth it. 

See chart.*** Tangent Alert!

This will depend on the type of loan, size of the deal, experience, FICO, and property location.

With the size of your tax free gain on sale, there is no scenario where your after tax return would be better by keeping the property.

With low cap rates and high revenue and profit, valuations are off the charts!!!...

Sacramento is one of those mid-size cities that doesn't seem to have any seriously blighted areas and the few blighted properties are few and far in between.

I was presented with an off market deal in Hammond with the potential to rehab it and add another bedroom, so I am trying to size it up as well and see if its worth it.

I am unfamiliar with taking on a loan of this size and the possible liabilities.