Lastly, in areas that are seasonal, operators can consider mid term rental (MTR) for the off season period at a significantly reduced average daily rate.

Lucy,It does look like you are referring to the minimum interest, or prepayment penalty, of your existing lender as well as the 'seasoning' period of any potential new lender.Most HMLs won't have a prepayment penalty on a rehab-bridge loan, but a lot of long term refinance lenders would require a period of time after you purchase it before they would take the new 'after repair value' (or, seasoning).

Therefore, it is very likely you will have to depreciate the expenses over a set period of time.

As you could imagine, landlords would be filing claims frequently and all over the country if this type of coverage was a real thing (especially when times are tough, or during a period of inflation). 

I wanted to propose he sell to me at a 20% discount and I would lease it back to him for an extended period of time. 

We bought the property on 3/8/2024 for $315,000, expecting an ARV of $315,000 after addressing a foundation issue and completing renovations.During the inspection period, we received a quote of $16,284.72 for foundation repair and $23,800 for subsequent renovations.

Your Resltor should have made you aware of this during your due diligence period.

That outpaced overall inflation, which rose +22.7% during the same period.

You can also offer short contingency periods that start when the offer is accepted so they can be out of the way well before the closing period.

Make sure you extend your due diligence period until you receive and review the docs.