I don't give a frog's fat butt if it makes his job more difficult, and honestly, you have to do math anyway during the course of the loan.

If there is fire, smoke, water, or storm damage to the unit  and they are forced to move out while repairs are being made - the Renters policy will pay a set amount of money towards their temporary residence (hotel) until they can find a more permanent place to live or you are ready to have them move back in.

I and my sellers get it without any of the fat.

@Michael Lear if you were to refinance into a more permanent loan you should only refinance into a loan with no prepayment penalty if you are still trying to sell it. 

It is the worst kind of debt because it is permanent.

However, repairs or improvements must be permanently affixed and add value to the real property.Costs and Escrow Accounts The costs of the renovations will be based on the plans and specifications for the work and on the Construction contract for all of the work requested by the borrower.

I worry that it will be hard to find good tenants because most families that need that much space either 1) already own a house, 2) can't afford such a large apartment or 3) can afford an apartment that large short term, but long term will end up inviting their extended family, etc. to live with them because they have so much space and can't make rent on their own.The only good potential type of tenant I can think of is a middle-class family that needs non-permanent housing -- e.g., professionals who are in the area for a year for work and want a large space to rent for that period.

And I'd then have a big fat mortgage.So after 6 months, I can cash out refi, have a mortage, and after PITI, account for property management, saving for cap ex, repairs, etc, I could cash flow $100 a month. 

The saying " pigs get fat, hogs get slaughtered" seems to apply.Terry

He's military which adds an interesting twist because he has permanent change of station orders out of CA in May.