It happened to coincide with Hurrican Harvey and we flooded during the rehab. 212 extended the HM loan without any extra fees for 4 months until December 31 2017.

No extra unit will ever berented in it.

It sounds like a few people on this thread don't really understand how PMC's operate or why they may charge extra fees.

More traps, patch up holes, tell your tenants to be extra clean when dealing with food. 

Sometimes you might want to go extra on something like the master bath or contemplate other exit strategies.

(You say it’s worth about $100k more than you’re paying so figure an extra $15k.)Maybe you’d be better off partnering with the parents unless they have zero interest?

It would be super simple to do something like this and get extra income around your pilots schedule for a while.

It needs to be permitted to be qualified as an extra bed room.

The 2-3% points in extra cost are worth it if you plan on using as I described above because the use would be for a few  months at most and due to that short term use you can survive a rate adjustment up.But, if you have no plan to payoff the debt like when using for a down payment on a long term hold why pay the extra cost for flexibility and have the additional risk of the adjustable rate with the amortization looming when you can get a fixed rate second mortgage. 

My dad and I got caught by that snag on our third flip years ago, and we definitely kicke ourselves for not doing a little extra research up front.