@Ray JamesThe simple answer is no, I personally would not, if for nothing else that to pay 5 points (4.9 pts technically if I recall correctly) and 15% is way too expensive in this day and age of competitive lenders.  

Also, I'm expecting a pretty large correction in Socal pretty soon due to our market being propped up largely on foreign money.

Hi @Devlin Mcconnell, welcome to BP.While @Jake Hartnett is correct, not having a full bath will limit the potential rental pool, in the Boston area that might really be a big issue and might actually be a benefit.If you are close to the city there is obviously no shortage of "young professionals." 

I think you're primary point is correct: both loan terms can work, it depends on what you want to get out of the investment in the short term.

And if that is the case that there is a leak between the meter and the house, that is my responsibility to repair, correct?

We will see a whole wave of residential land go up for sale.

First choose correctly.

Get the note papered up correctly so that you can sell the note later, if you decide to do that. 

I am trying to word an email correctly, and only remember hearing the term used once before.

How do I make sure Im practicing evaluating practice deals correctly ?