@Janine LaBriola...fyi  1)-the pricing on  2nd home loans  used to be the same as  primary home loans ....several months  ago - this  changed industry  wide and now the pricing for 2nd homes  is closer to  rental  property  pricing    2) markets  volatile  -  get your  rate locked  3) depending on your LTV- you might inquire if  putting mre  down  will improve the  pricing   4)  ask  if there are any higgher rate  options with lower  fees  so you can  try to lower the  1.8% loan fee 

The returns can be healthy but with that comes higher volatility.

I have been somewhat concerned by the entry of hedge funds into the market as it would create more volatility in home prices as well as immediately pump hundreds of homes onto the local rental market.

Market Volatility: Real estate markets are dynamic and can change due to various factors like economic shifts, interest rates, and market saturation.

If I were a buyer, I wouldn't pay a 9-10% cap rate for that kind of volatile cash flow.  

Is the reason being the volatility of the market makes for a dangerous source of liquid capital? 

It definitely makes it easier to sleep at night when there is much less volatility.

With interest rates going up and the wild card president you mentioned volatility (real or perceived) is high.

If I were to not have this under contract, I would strongly consider holding out for a move to a different, less volatile market at this time.

Well, volatility and risk aside... lol.