Doing a 40 year term as well, your payment does not decrease significantly from a 30 year due to the additional interest charges.Option 4: Of the 4 options presented, this appears like the choice I would make. 

.- sounds like you have  already  figured out  what you should do .....also  - fyi  regarding  any  seller  credits  you can  obtian ....if you believe that you  will sell the property /  refinance the loan or  possibly pay it off in short term - dont use the seller provided  concession to buy rate down -  ask for the  price to  be  decreased  ...if you think you will carry this loan for a longer period - consider the  buy down  rate/ fee options 

The best way to get around that is to fund a heftier down payment, wait for rates to decrease, or find a 2-4 unit that will allow higher rental income.

Zach,Interest rates are already beginning to slowly decrease and inflation is stabilizing.

What I read about the all-in-one loan is that the line amount is not due back after 10 years but that the amount you can borrow gets decreased by 1/20th in the 11th yr and then 1/19th the next year and so on until the line is down to $0 by year 30.

I was able to refinance at a $300k valuation but I don't really want to hold these assets.I have the same issue with another 10 unit I own and another 6 unit.You significantly decrease your buyer pool on the exit, in exchange for stronger rental income during the hold.My investment strategy has always been buy, increase property's income, sell for a profit and keep growing but STR/MTR might not be conducive to this strategy. 

Notice the sharp decrease in both MoM and YoY (down ~19%).Rentals - Closings by MonthRentals - Months of SupplyInventory stayed under 1.4 months for much of 2023.

In addition, the STR rents have decreased.  

A mix strategy with a portfolio in single family houses focused on long-term to decrease taxes, multi-family properties for short-term for passive cashflow and flips for more $$$ to invest is the best strategy.

There are ways to fix it, for example by paying off credit cards and decreasing utilization rates.There are options you can take with bad credit, but in general, increasing your credit score significantly increases your options.