The key here is buying at a discount.

You will get a more accurate idea of what your actual interest rate is without paying any discount points.

If your goal is to move closer to family and you’re getting the house at a discount, it’s a strong personal and financial move.Advice Based on Your GoalsGiven your long-term goals of being debt-free while building a rental portfolio, it might make sense to hold onto the Stockton property.

Whether its LTR or STR - if you buy at a discount of around 70 to 75% LTV, you should do ok. 

If the builder takes 18 months then he's paying theinterest and you aren't But I think if you sign the contract to buy before construction starts, you can still get a sizable discount from the right builder - in certain markets anyway. 

And super low inventory means no discounts, even for properties in rough shape.

Since then, I still do some creative finance, but also do many BRRRR which also I have to buy them at a healthy discount.

In addition to joining the seller to the buyer at the hip for several years/decades when the seller wants a clean break, the properly-discounted, risk-weighted, money to be received by the seller is less than the immediate sale price.

For example, one of our tenants gets discounted rent from April-October for managing the landscaping. 

If it’s possible to get enough of the renovation done quickly then I’d move in some tenants even at a discount to provide protection from the squatter.