For certain areas annual pest control may be needed for colder areas maybe you run the risk of freezing pipes.

There are several ways you can continue to expand! 

Several years ago when the low flow toilets came out, some just didn't work well at all.

Have since insured a triplex with them as well, saving several hundred dollars in the process.

You mentioned the risk of an unsuccessful flip.

They financed 100% of that transaction, and I took on a huge loan - a huge risk for a broke guy like me.

And therein lies the risk of high-leverage.  

While I understand the risks associated with investing in areas unfamiliar to you, my budget forces me to do so.

I did the same thing several years ago, but for very different reasons. 

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.