Yes, it's a 10-year declining dependent up on your term length and amortization period:  What You Should Know About SBA Prepayment Penalties | Pursuit (pursuitlending.com)

That does not mean you cannot make a good return, it just means you have a highly compressed period of time to do it.

If the money is not there by the end of the grace period a rent demand notice gets posted on the 6th.

After closing, we discovered that for about 5-6 of the properties, tenants had been granted "sweetheart leases", well below market rates, extending through 2027 and beyond.

But use BRRRR and legal entities in such a way that you don't want to wait for the seasoning period, and you can BRRRR every month.

I’m currently buying a 6 unit that will cash flow 5X the amount in a short time period compared to the garage conversion.

Period.

I would have no way to stop the Bank foreclosure during the HOA redemption period and could get wiped out. 

the biggest indication of a investor failing in real estate is not having enough reserves to get through the rainy seasons of the investment where as people who can get through over a long period of time do extremely well.

I offered not to raise a rent and if they extend, they could cancel any time to buy their house.