I wouldnt let the possibility of a short term vacancy affect my investment decision to buy a property Im likely to own for a decade or more.  

I am looking to buy and hold a single family home via either short term or long term rentals. 

Read "Rich Dad Poor Dad" right out of high school and bought my first place shortly after while still living with my mom and going to college.

Short and sweet, I can do!

Say a $50,000 heloc will be assumed one day to have a $500.00 a month payment even though today it doesn't since its interest only and at a lower rate than say a year from now when it rises each time the Fed Reserve raises their short term rate.

It's just how short sales work.

If my plan was to hold onto this short term (let's just say 2-3 years out of thin air), it makes no sense to pay the point up front and I would opt for the higher percentage rate per month.I know I've heard/read that some people would argue that it rarely ever makes sense to pay the point up front, but if its a long term play, I don't truly understand why that might be...Any info appreciated!

Everything that I've seen says that an LLC is best for long term investments (rentals), and an S Corp is best for short term investments (fix/flip).

I am getting a short-term lease while I get to know the city and save up some money.

In short, I'm a private real estate investor.