Prepayment penalties- usually 1-5 year terms.

If you have private money available, you should explore those as preferable options due to terms and upfront coasts as compared to HML options. 

However, my focus is on long-term rentals, creative real estate (like buying sub2 and with owner finance) and buying mortgage notes.  

Also love @Patrick Allen's reply mentioning.(1) HELOCs on primaries are easier to obtain(2) High rates may make cash flow difficult unless there is a clear & compelling refi strategyItems I'll add from my seat.(1) Although rare we(Lower.com) offer HELOCs on investment properties, but the terms will always be better on primaries.(2) If you're moving into the next home, needing to only put ~5% down doesn't leave you very exposed to the higher rates of a HELOC.

Our plan is to hold the house 5 years + until the market comes back, or possibly just holding it long term. 

The pension amount at age 39 is not enough for me to feel comfortable, so my long-term plans are to start a small business and invest in real estate to position myself where I don't even need my pension, and it's just a bonus.

I live in CA and am looking to invest out-of-state in a SFH to rent long-term.

Looking to find Rental Dwelling Insurance for my home in San Jose, CA that is leased long-term. 

If you're in contact with the owner/seller directly, and you don't feel there is a lot of competition (off-market), might as well start with an LOI to lay out terms before drafting a contract.If you need the offer to look compelling because other buyers are circling, a PSA would indicate more motivation on your part.

I am favouring DST because their financing model is long term fixed debt with REIT quality operator, however don't expect 10-15% in the future LOLYou would be crazy to re-invest at syndication in 2024 ; but DST is safe enough for me due to the financing aspect.