You can look at ARM options in the mid 3%'s for lending as well as underwrite opportunities at a reasonable discount.

(1) The better strategy that you could do before is to buy unit 1 as primary, on 2nd or 3rd year you buy unit 2 also as primary, you live there for 2 years ;  meanwhile rent out unit 1;  then after 3 years, sell unit 2 as primary, first, 500k is tax-free, then you move back to unit 1, live there for 2 years, sell it again, first 500k is tax-free.(2) Repeat (1) cycle ; buy with 10/1 or 5/1 ARM

The high leverage and interest only part really helps on the cash flow and overall return numbers.I probably won't save anything switching to a 3 or 5 ARM.

The issue is that the IRA transaction is not an "arms length" transaction as IRS requires it to be.

Just be aware you will probably take a significant hit from UPB as investors look for double digit returns as note buyers and loan at 4.5% interest rate will need to be discounted.Another is to reach out to fnac but they will want the note to have been serviced by a licensed servicer prior.

ARMs and Balloons.All depends on your strategies on which type fits best for you.Cheers!

., the issue with a HELOC is that rates could continue rising so if you plan on keeping it for longer than a couple years, you could end up paying double digit rates.Option 2 removes that so I would personally choose that option.Ultimately, it comes down to what your risk tolerance is and what you are comfortable with.You seem like you have thoroughly thought through both options so I am sure that you will make the best decision.Hope this helps!

.- the 5.5% comm loan you heard about is  prob a short term arm loan ...commercal loans  are  definitely  not  better/ lower than residential  ( unless you  locate  a  very unique  comm source )

The rate is variable so if you keep it open for years, you could end up paying double-digit interest rates.3.

It's called "an arm's length" transaction.Again, a tenant is a tenant.