Am against ELOC variable rate for longer duration loans, but your current rates would make a refi undesirable.  

Just because you have a month to month lease doesn't mean tenants aren't going to stay 25 years, or tenants with 25 year leases aren't going to move after a week.I do 1 year to start then month by month for the duration. 

I was never the one targeted by these programs, but the servicers went beyond the mandate and tried to refinance everyone they could.For me the key in refinancing was not to take cash out and do not extend the duration of the loan.

@Scott BridgehouseUnless the lender stipulates differently in their documents (like VA financing that requires owner occupany for the duration of the mortgage), 'owner occupancy' requires that you move in within 60 days and retain it as your primary residence for 12 months. 

How can I effectively rent out rooms for mid-term durations or even secure a 6 month lease?

But I know this would probably have a higher entrance cost to get this going.As for cost comparison I would talk to builder to see what the difference would be and look at your return over the duration you intend to keep the property.

You should contact the hospital's human resources and see if they use traveling nurses and how they find housing in the area for those employees.You can look on furnished finder and Airbnb (set minimum duration to 30 or 60 days) to see what kinds of rents people are getting for providing furnished premises.

In some cases this can still be a good option, just be cognizant of how high the monthly payments will be due to the short duration that these loans are for.

Unfortunately, this means that I have to let this deal go, but it made me come up with a couple of questions about this situation:Does anyone have experience in partnerships where one partner's only real requirement is to sit on the loan and potentially provide interest payments when needed during the duration of the construction? 

I would like to see how neighborhoodscout compares it to my San Diego market especially over longer durations (10 year plus).