I’d like someone to give me an example from history of an asset class - ANY asset class, anywhere - that is not subject to cycles and fluctuation.  

Not sure how much a ES is going to be in your area, in our local market depending on the type and pahse the cost fluctuates - also fluctuates with how quickly you may need it.Loan term you described not bad the 80% LTV is good - the amort is good, the arm is typical, origination ok - you can likley get a non-recourse (thats your rate quote - will change until you lock in)Check the prepayment clause, normally it is setup as a step downYou can likely ge t a 7yr. loanI would encourage you to seek a local bank on your first deal, establish a relationship, perform and repeat :) Originally posted by @Tony Castronovo:First, I am learning that "typical" and "commercial" should not be said in the same sentence. 

The issue is fluctuating income, you could have 30k first quarter and 5k second quarter, in short, lenders will not know if you can pay 3 months of mortgage on that second quarter, whereas if it is a W2, they will know that you will have the paycheck regularly and more assured you have something to pay their debt with.

The vog (volcanic fog) here is worse than usual but the air quality according to the EPA fluctuates between "Good" and "Unhealthy" depending on the wind patterns. 

In the more rural areas, prices are obviously cheaper, but they have there own issues such as fluctuating demand because of oil/coal booms and busts, limited selection of tenants and property managers, etc.

Rates will fluctuate but fed didn't raise rates last time they met and they're not meeting until June I believe. 

Since they are exchange traded, like a stock, they will fluctuate in price and are not precisely tied to the NAV of the index.

Currency fluctuations, tax policy, FED actions, international relations and commodity prices DO affect our business.So, my point?

So, thanks to the falling we're seeing now, house prices in real terms will be lower than they are now.Now, because there are short term fluctuations, the prices might actually be up or down exactly 20 years from now.Nominal prices will likely be higher.

Historically, appreciation has matched inflation over the long term, with short term fluctuations.