I believe there are high interest bearing amounts that are similar to CD rates but they give you the flexibility of having all the funds available to you immediately.

Down payments are still standard for FHA or conventional (3.5% of the total cost, purchase+construction) and rates are on par with standard FHA rates. 

The lender offering 10% down on 30 year mortgage was a miracle worker for us in a crunch time situation.

I have a vacation rental which it’s the off season and I accept rents at a lower rate.

Therefore, even if I obtain a good value for the surface yield, it's possible that the Net Yield is unexpectedly low due to unexpected expenses.In Japan, the ideal yield varies depending on whether the property is new or used, the bank's interest rate at the time, and the real estate market conditions, but if the real yield on any property is 10% or more, the property is reasonably profitable and the cash flow is sufficient in many cases.

The Stessa rates are attractive enough that I would let it accumulate in their high yeild account until I invest in something.

I don't think I would advise anyone do something or not do something because it might be a "red flag" - yes the IRS has plenty of red flags, but the audit rate on most of these issues is so comically low, that as long as you have a legitimate position - take it, don't not do it just because it might slightly increase your chances of an audit. 

The B+ to A- area one, forget the vacancy rate.

Funny Example: once had an agent complain, "why are you treating this like a mortgage, it's only a lease?"!

What are vacancy rates in your market and does the current tenant plan to re-up for another year?