(Our duplex would have floated away!)

All are very well kept tho two units can use some touchups and specifically new flooring which should be max 1500 for both Apartments floating hard wood..

Apparently, all those people "moved up" with all this extra cash floating around, so it looks like I am dealing with a tier lower than what I am used to. 

I suspect they may need to recalibrate their expectations unless they are willing to float and, by some miracle, we get a steep drop on the 10-Year Treasury driving that rate down a bit. 

This will sound really stupid but there is tons of cash floating around looking for a home.  

My fiancé owns a construction company and it doesn’t make sense for him to float all materials and labor on a job hoping the owner pays in a reasonable time when finished.

@Peter NiermanWelcome.I think the complexity of your arrangement is bolstered by the fact that there appears to be loads of 'funny money' floating around.

Furthermore, hanging onto the home in hopes it may appreciate (not saying you're doing/thinking this) is your only potential upside in the near term, which is highly speculative.The ARM going floating in 2 years could also be a timebomb.

If the student housing plan doesn't float well, I will rent it out as a regular rental.

Personally, I would not explore DIL until I floated that idea and see how the first lien holder responds.