Might have to go with a bridge loan.Mark

There are some in the nicest areas and you'll be paying 80k+ a unit there...in some of the less desirable areas of the city it could be 20-25k a unit.

The rest are aesthetics choices that need to be desirable in 5 years.

If they leave owing you money, you won't be able to go after them.

Another option is to go interest only from a private source at 7%, same 1M loan on the asset, highly flexible and no additional fees as we have already got the construction loan in place on title.Currently leaning toward the private option, it could,  based on flexibility, allow me to improve my balance sheet and down the road approaching other lenders to get more of a residential type product given the property has 3 titles, rather than pursuing a blanket type loan through the commercial office.Downsides of the private loan include the interest only payments don't allow me to amortize the building, and the rate is higher.  

Compare this to your insurance deductible, which can be high near the coast and, as you mentioned, can be higher during a named storm.One wind claim during a catastrophic event should not cause your insurance premiums to go up, but if you have had multiple claims in the past 5 years, the frequency of your claims could cause an increase.The reason I do not advise you to call the insurance company first is that it will be entered as a claim on your policy, even if you ultimately do not receive any money from the company.I hope this helps. 

Way to go, Frank. 

It would not make sense to go through the hassle of getting a mortgage on a property (if it even qualifies) just to turn around and try to refi it a few months later.

I looked at what air bnb's seem to go for there, and with a 20 out of 30 night per month occupancy, it would not only pay for itself, but cash flow nicely.I'm not a new investor at all, but completely new to this type of model. 

He is actually really looking forward to going to the new place.