Lastly, they decline claims all of the time for "improper maintenance."

I would have declined the applications based on the info you saw.

Even though rates have been on the rise for the past few months, we are finally seeing some stability and hopefully we will see a decline in the near future.

We managed to take a $3.5M building and create a cash flowing stabilized product valued at $6.75M today.

A mtg loan, just a heloc, is pure simple interest.....interest owed for that month is purely the interest rate applied to the loan balance.The reason one pays such a huge amount in interest on a 30 year loan is simply that....you don’t pay all the principle back fully for 30 years, so you are paying interest on a steadily declining balance for 30 years.Yes, I know what an amortization schedule looks like.Why don’t you compare a 30 year $100k with a heloc at the same rate.....make the same exact payments per month on heloc as called for in the 30 year loan.....you will find the heloc takes Exactly the same 360 monthly payments.They both calculate interest each month Exactly the same.

I always tell the owner of the property that this is an offer on the table, and they usually decline.

Starting with a mortgage calculation based on what loan product I might be using.

It's going to increase the number of arbitrage units, which I think decreases the quality of the product.

Do you usually suggest getting the more expensive quality product or something a little bit more in between?

In my experience there isn't really a "first time home buyer" loan product.