I've posed this question to two mortgage bankers in person and both suggested that nothing would happen as long as you made your payments on time.

It may sound nit-picky to some, like an English teacher correcting grammar, but how and what you say in business matters, saying ain't to a guy on the street may not matter, saying it to your accountant, appraiser, attorney, banker, or a sophisticated investor, it might matter as to their impression of you.

While the intent was good, you should have been more involved and the lawyer would have explained the variable rate when you signed the papers-along with your banker. 

At $3M, it seems like you should budget $5,000 or $10,000 to get a company/consultant (e.g. retired banker) to help.

A few of my ex-coworkers would like to invest in short and long term real estate. here's a scenario based off of real numbers I came up with and please let me know based off experience or, opinion, what you think.2 family acquisition :$50kRepairs $70kARV: $225kGross rent $2600 monthlyI'd like to use private money to buy and fix, then get a separate long term(10 year or longer) private loan for $120k.My other alternative on cashing out after the rehab is to refinance through my mortgage banker from one of his portfolio lenders.

I’m assuming you obtained this 6.4 cap rate from reliable sources such as local commercial brokers, bankers, other investors.

In my 21 years in the business I've been with both franchises (Re/Max & Coldwell Banker) as well as smaller independent firms.

Hopefully we have some bankers who are willing to weigh in on this.

I've emailed the banker I worked with on the past few transactions to see what costs/benefits he can provide as well.  

However I have been going thru it with my banker and there are some aspects I need help on.