Always ensure the guest or airbnb initiates the cancellation to avoid the penalty, and in this case you definitely deserve the booking revenue. 

As an investor and real estate broker/owner of a private client investment firm, the interest rate is not as important as long as there is no prepayment penalty and the points and fees are low. 

The issue with that it probably doesn't specify a penalty for it and the tenant already owes you for the lost rent and damages.

@Megan Samar, You could take a distribution from your 401k but not advisable if it's going to cause taxes/penalties.

Option B – What I’m considering10% down (~$20k), Conventional 5/1 ARM (no prepayment penalty).

Investors I work with are really hyper focusing on prepayment penalties with DSCR.

Option B – What I’m considering10% down (~$20k), Conventional 5/1 ARM (no prepayment penalty).

Key thing: get timeline penalties in writing upfront.

Courts tend to look more favorably on charges that are specific, documented, and not structured like penalties or double recovery.Separate rent, damages, and admin costs.

Solution:  Property Owners can add a clause in those Seller Representation Agreements  that says if an agent does not return calls within a certain time frame or if its determined the agent does not act in professional manner that is immediate cause for contract termination without Seller interference penalties.