If not, I'm guessing it would be treated as a traditional rental loan, either conventional or DSCR, using market rents rather than the rent in the lease agreement.

The lease agreement should have noted when the tenant pays rent.

Each of the 12 condos can sell for, at minimum, $130,000 meaning that the overall gross resale value of the building grows to $1,560,000. 

.: I haven't passed this past legal review so for what its worth: Part of my standard requirements for everyone include income is at least 3X rent, minimum credit score, say 640, Clean record and no evictions as well as deposit is paid in full at signing of lease and 1st month rent is paid in full prior to handing over the keys.

Why not take his name off the LLC and put it in your name now while the LLC has $0 of value (or whatever nominal amount your articles of organization or operating agreement say that you contributed)?

Are they requiring a minimum DSCR of 1.25x or 1.30x as well?

The two of you would need to sit down with an attorney together and have a partnership agreement drawn up.

An agreement would be signed, and the property would be sold in 5 years and proceeds split up appropriately.

After voicing that I will be hiring an attorney and filing a compliant with the Utah Division of Consumer Protection all my ad spend was cut off without warning to make it look like I violating the agreement and I was also locked out of some areas CRM system.

If you are unable or unwilling to do so we may elect to terminate the lease and request a return of our deposit--which we offered in a good faith agreement that we would be presented with a habitable dwelling--and our prorated rent.