They can rent the property they purchase to you (or anyone).The property must be held for investment purposes for at least 24 months immediately following the exchange.

Last month, I pulled the trigger on getting my first real estate property ever and decided to go with a 4 bed, 2 bath new construction to limit all the variables involved since I am still in college.

But you have to understand you may get monthly cash in your pocket, but you'll have more problems and little appreciation.

The POHs are $800 a month and the TOH is $300/month.

The great part about contacting the CDC directly (and a large one such as TMC) is they can make referrals to banks that would be interested in your project (i.e. banks that have been actively doing SBA hotel loans)...rather than you having to chase down the bank first, which can be very difficult.Regular commercial lending requirements are applicable (will vary by bank):1 - no bankruptcies2 - no foreclosures3 - FICO > 7004 - net worth >= loan amount5 - post closing liquidity >= 12 months of P&IIf this works out, you are going to be glad that you made this post.

With 4 rentable rooms (including the basement), I expect to generate $3,600/month with full occupancy.

That's a great place to start, we have over 1000 local members and hold about 20 meet ups a month.

With a low 4.75% rate but minimal cash flow ($50–$125/month), your equity could likely work harder elsewhere.

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. 

I had a project last year that a sub hit a conduit that was marked out and the utility made a claim many months later.