Then I give the seller a few different options to choose from.

Take the fixed option 

Option A appeals to me more.

Candace@Ariella Jacques   One potential downside is that when you refi you will only be able to pull out 80% of the market value (so leaving 20% of your cash behind)  instead of having the option to put down as little as 5% when you use a loan to purchase. 

However, if the asset has weak numbers, they may consider the buyer/borrower's personal strength and ability to repay in extreme cases. 

( perhaps related to STR vs LTR, if I want to have additional options - mainly planning on Long term rental) -Areas that are looking better for cash flow?

Most non-qm options for self employment would also require more than the minimum 3%/ 3.5%/ 5% down. 

You could do private lending as another option. 

Is this a smart move or should I consider other options?

Looking at the gray color palette but there a lot of different options at different price points.