The core distinction between these two options, other than the interest rate, lies in the varying prepayment penalty scales: 4% more for the first year, 3% for the second, and so on.With the latter option, my cash flow is healthier in the present context.

So, if you bet on cash flow and you are right, you get cash flow but not typically market appreciation over the long haul.Also, I'd like to make the distinction between short term and long term market appreciation.

I have been actively engaged (important distinction!) 

Both of which can and do eat up investors profits.Keep in mind there is a distinct difference between buying and supplementing rental income on a single property as opposed to investing in income properties.

Is there a legal distinction between renting out multiple rooms in a house verses renting out multiple units on a property?

Each is a very distinct market with different rates, as well.

At 500+ square feet, separate bedroom and living area, full size kitchen, automated processes and an electronic guest/resident communication, office only open during regular business hours, much smaller staff, and long average length of stay, it's unlike extended stay hotels which have much smaller rooms, no or limited separate bedroom, no full size kitchen, open 24/7, bloated staff, much lower length of stay, and high opex ratio (which is a big distinction). 

~Annette Its bad marketing and misleading broker - DSCR Loans need to be crisply defined as residential investment property loans (traditionally 1-4 unit, recently expanded just a touch to 10) as distinct from Multifamily or Commercial Loans which generally are for larger properties or multifamilytried to do so in this articlehttps://www.biggerpockets.com/blog/what-documents-do-you-nee...Multifamily Loans which traditionally are anything over 5 units and/or over 3 million loans are not "DSCR Loans" these are a totally different loan product. 

I get the distinct feeling you want to be able to use it from time to time.

Absent fraud, or heavy co-mingling of funds to the point where there no meaningful distinction between the business and the owner, the law dictates that the corporate veil holds up.