You pay in two ways:  Upfront cost and in pre-payment penalty. 

What part of Philly is your duplex in? 

What made you interested in investing in this type of deal?

Quote from @Clint Miller: Anyone here in the community used construction loans to scale their development projects?

Hi Raymond, You are correct in your assumptions.

I just purchased my first house and plan to run it as a mix of MTR and STR.

In 2017 we started our journey with long-term buy-and-hold investment properties in the Memphis, TN area after selling a property that we were losing money on every month in NOVA that we purchased as a primary residence in Jan 2007 (talk about all-time bad timing) and then had to move with the Navy in 2009 (2nd all-time worst timing).

They explained that Fannie Mae (according to an exchange with their Servicing Portfolio Manager at Fannie Mae for a similar but not an exact loan) does not allow PMI removal for improvements already included in the original loan’s scope until after a two-year seasoning period

Beyond that, any excess cash I have will either go into investments or into savings for a down payment on my next property that I can house hack again.

@Tanarat Bunchom Thanks i think that will be the route I go, A local bank in the area.