If that isn't satisfactory speaking at a city counsel meeting about the subject would also seem appropriate. 

@Jason WeidmannThe strategy seems solid.

You seem to be asking a lot of questions, looking for quick shortcut answers. 

Based on most of the work I do with HMLs/PMLs on behalf of my clients, 12% at 70% LTC seems a bit more conservative.

Find out what rate rents are increasing and expenses are increasing in your area and use that in your underwriting, then work out each year of ownership. 5% rate in 5 years seems ambitious.

This may seem like a dumb question. 

You already seemed to conclude you are forcing this deal, I would agree unless there's a reason why this property will appreciate significantly in the near future and the 40 year amortization schedule allows you to hold on for that to occur. 

That’s reassuring and seems like good advice - I appreciate it.

Doesn't seem like that's how it should work. 

No one has that answer, but I'm fairly certain that nearly everyone would agree it's longer than a year, and it seems that's all this capital call gets you.Next, consider why the lender is willing to make this extension.