Most people took Step 2 between July-August. I waited until September, but in hindsight, wish I had taken it earlier to get it out of the way. Many of my pals took either July or August off to take the exam. I didn't take any time off, just scheduled an easy rotation (Ambulatory) in July to get a required rotation done and have time to study as well.
I was able to get all my application stuff done while doing my EM rotation in August. I don't think anyone should need to take a month off for applications. Just fill out what you can when you can. Also, make sure you start asking for letters right away (like at the end of rotations in your 3rd year). And ask for 1-2 more than you need.
I am planning to take December off for interviews. I also made sure to schedule easy rotations (9-5, M-F) for November and January. This is what most students typically do. Some even take 2 of the months off if they have a lot of out of state interviews. Remember, they only let you take off 5 days in a rotation to interview and that does not include required rotations (Sub-I, EM, Ambulatory).
Electives that seem to be very popular: Cardiology, Radiology, Anesthesiology. I did a rotation in the SICU at Henry Ford that was awesome. They are known for their ICU care, so any of their ICU's would be a great experience. Basically, do electives that are easy, interesting, and will benefit you in your future career. You may also want to throw in something that you may never see again. Also, remember that you will be burnt out by the end of the year, so don't schedule a tough elective or any required rotations (besides ambulatory) at the end of fourth year. March, April and May are months where you will want to relax, party, and move across the country if you need to!
