I’ll look into Lloyds of London for rates and terms.

Commercial rates are lower for a user than an investor.

.- in appreciation market with cheap money/low interest rate condition, flipping is much much better than renting.

What if rates stay where they are?

Are they looking to pay STR rates?

This is because at the current rates, a high LTV property (which is required to extract rehab costs) bleed cash. 

This means the interest rate gets bid down to al low as 1% and the price of the homes is bid up to an amount higher than you can sell it for.  

At acquisition, the in-pace apartment rents were ~30% below the market rate, and the expense ratio was at least 10% higher than it should have been.

This can trigger unfavorable tax rates when the property is sold, plus there are potential loss limitations, transfer issues, distribution problems, etc.  

All PG&E, SDG&E, SCE, and community choice aggregation residential customers — except for California Alternate Rates for Energy, or CARE, and Family Electric Rate Assistance or FERA, customers — will have to pay this tax, and it cannot be reduced or avoided, no matter how little energy a household uses.