I used to specialize in those back in the day and I did a bunch of them in Memphis in fact.  10 points 10 to 14% rate is what we got for those loans.

Many lenders will charge additional rate increase if loan is under $150K.

Code Chapter 47 - Fraud And False Statements, which is a very boring read, unless it applies to you.Please don’t do that.Make sure your Proof of Funds source has the funds and that you are authorized to use those funds and the source will vouch for you in court.If you are going to buy “Turnkey” it is recommended you visit the actual neighborhood and actual house before closing.Things can be very different in person.Afterwards is too late.You may not like what you seeGo with the Math, not the emotions or hopes of the futureIf you are losing money with the hopes of making it up later, you should seriously reconsider.Wishful thinking is a poor investment.Interest rates are going upAnd interest rates are going down.And interest rates are remaining the same.There is no clear direction for rates and there are arguments for going each direction – buy so that your property cash flows, even if you are wrong.Ignoring your workers.Always serve your workers pizza on the job.It keeps them on-site so they don’t wander offThey will think you actually care and will work harderYou get to become “one of the boys” and they will tell you things you need to knowHmmm, out of space, but not out of mistakes. 

But I don't know enough about TX real estate law to determine an alternative that would not require either the due on sale or refi, and I do NOT want to lose this ridiculously low rate.

The other 100K of gain's tax rate depends on where his other income is at.

To find investment possibilities, consider elements including property pricing, demand for rentals, vacancy rates, and economic trends.Think About Financing choices: Investigate your choices for financing a possible real estate purchase, such as FHA loans, conventional mortgages, home equity lines of credit, or other innovative financing techniques.

You can find super affordable homes here below the median home price that beat average rent in these areas.2) If you factor in principal paydown, aka the amount of each monthly mortgage payment that goes back to you in the form of equity, AND the opportunity for appreciation, as Raleigh is expected to grow substantially over the next few years thanks to big corporations and swarms of people moving into the area.... you'll find that the math works our quite favorably for owning a home versus renting.3) When you factor in rate incentives with new construction homes in these areas may be even cheaper.

Seems fairly safe and the rates are good

What is the market rate of comparable apartments?

Until rates come down, I think 10=15%, like others have said, is a pretty solid return IMHO.