Downfall is they will require a prepayment penalty in order to get a better rate.

Pros to my current position: Secure, w2, pay is above average, benefits are stellar, schedule is somewhat flexible (can leave if I need to without penalty; vacation when I want - utilizing banked time on both), 3 miles from home, and hopefully a pension in 17 years. 

There are no penalties for an incomplete exchange, You would then just pay the tax like normal.

Prepayment penalties- usually 1-5 year terms.

All of your responses help Hey Kyle - You likely have a 5-year stepdown and are down to a 3% penalty. 

For example, the seller might put in an expensive penalty if you refi early.Regarding the interest rate risk, I would not buy it today if the deal did not work at today's interest rate. 

Scenario 1: 5/1 ARMRate: 5.675%Monthly Payment: $5100Prepayment Penalty: 3/2/1Closing Cost: Broker Fees: $11,016 (1.25%)Lender Fees: ~$2,000Loan Fees: $600Plus standard title and other feesScenario 2: 30 year fixedRate: 7.375%Monthly Payment: $6086Prepayment Penalty: 5/4/3/2/1Closing Cost: Broker Fees: $11,016 (1.25%)Lender Fees: ~$2,000Loan Fees: $0Plus standard title and other fees5/1 ARM looks attractive but not sure if that's what other people opt for that for a STR property? 

They can have a prepayment penalty and higher out of pocket costs at times as the main drawbacks.

Yes, most definitely at that credit score depending on the prepayment penalty you want and even at 20% down I can secure you financing anywhere in the 6's.

Watch out for default terms, due-on-sale clauses, and negotiate prepayment penalties if applicable.