If you are pretty confident with the appreciating market specifically in duplex, and you can float it with enough cash reserve, I'd do it.

They bought billions of "value-add" MF, mostly with floating bridge debt.

No money for other investmentsI can immediately deploy the cash  ( if I went with case 1 and 2) to pay off other construction loan debt @9.25% floating rate.

I saw the term floating around but I'm unclear what it covers when it comes to rental properties, and why this is recommended over forming an LLC. 

-We have just enough income to float the second mortgage in case hell lets loose.

Bend is known for its outdoor activities (skiing, biking, kayaking, rock climbing, hiking, floating the river through town--they just finished a standing wave park in the river for surfers, kayakers and floaters to enjoy) and for its amazing breweries.

However if you are saving 2k a month and the HVAC goes out you likely can get it replaced and float it on a card for a bit if you have to.

You can buy even nicer material and much cheaper material but I found this to be a good happy medium.https://www.homedepot.com/p/Home-Decorators-Collection-Blue-Cedar-Grey-6-in-Wide-x-48-in-Length-Click-Floating-luxury-vinyl-plank-flooring-19-39-sq-ft-case-360486/304051044If there were hard wood floors under the carpet I ripped up- I would have chosen to refinish them with 4 coats of polyurethane.

This forum has a ton of information floating around.

You can also install a float cap in your floor drain but they do not work as well as the backwater valves but the cost for materials is $25-$50 and you can buy them from Home depot, Canadian tire, Lowe's etc.Some inspection companies actually have a home buyers warranty in case they missed something.