The third year your mortgage rate returns to the fixed interest rate that you obtained at the beginning of the loan. 

This may mean a $400k+ loan with at least 3.5% down.How would this 96.5% LTV affect my ability to obtain future financing?  

@Robert SapienzaIt is a dilemma lower interest better terms most likely but less asset protection.  

That may work in Texas where that is a way of life but in most of the rest of the country, the asset manager actually has to do some work and tell the contractor what improvements to make.If you're new to the game, I recommend you read everything you can find by Dave Lindahl and Ken Mcelroy.And it also depends heavily on the property you are working on.But here are the basics.First, fix up the exterior.

Definitely a huge asset information and networking wise for someone just starting out.

Been eyeing a few Starbucks properties and they seem to like the kick-out clause and they require you to obtain full liability insurance on the property.

Also,  you would have to follow some rules to get the desired asset protection from LLCs ( separate books and those kinds of stuff).

I want to structure the partnership correctly so that everyone's assets are protected.

As such, whether real estate may or may not be more efficient with after tax money that you noted you do not have, is not really relevant.Real estate can be an excellent retirement asset. 

PLus ZERO % financing.. if you do not have use for the extra money a month  LIke bills or something I would continue to pay this down you can own it free and clear pretty quick with zero interest.. and when its free and clear you have your self one great asset and all the cash flow.