In some places, creating an LLC is time consuming and expensive.

Hey Wyatt, congrats on the awesome deal-- but I'm curious why you opted for 20% down? 

This article today has an OPT IN which I did not do: Millennials & Gen Z want flexibility and affordability, more than a long-term commitment.

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? 

Let's assume they do not transition to a vacation home, but opt to turn it into a mid-term rental.

There are all kinds of potential bad outcomes of this for sellers.Most businesses and consumers should be striving for efficiency and transparency. 

Most investors opt for the skeleton versions that truly miss the mark and lead to convoluted amended and restated agreements that cost far more to correct than simply paying for the agreements to be drafted by a professional at the start. 

Like Chris, I'm not brave enough to buy a consumer loan in Chicago.

Then you have price improvements of .110 and .050 for total of 4.965% in LLPAs.This means that the rate has to pay enough to cover the LLPAs plus whatever the lender is trying to make.In case like this, where the LLPA hits exceed what the rate pays, that difference is charged to the consumer.

If it is consumer spending or they lost a job and didn't figure stuff out that's a no go as I would be in the same boat if they lose their job again but I get medical.