I see you did a loan sizing down below on your sheet, but I'm thinking that's on current NOI and not on a 7-year projection.

It may or may not show on a credit report, depends on the servicing and you should have the loan serviced.Failure to include the debt on a future loan application is mortgage fraud, wanna go to jail?

I would include servicing costs of the loan and licensing costs.

They have contacted me for a commercial loan.

I have also been doing quite a bit of research on Loan's, tax consequences etc., and am working towards being a expert in this niche.  

They have contacted me for a commercial loan.

If the loan is being paid the seller/previous owner has no reason to want off of the loan.

Quote from @Jay Hinrichs:Jay, it does look like one of the strategies of this 711Rescue is to restructure the loan for their clients, but at 2x DSCR!

@Jordyn Ohsnot enough info to helpbut if you're using a HELOC for the down payment AND getting a loan, then you're probably negative cash flow given that's 100% leveragei would never do that unless i were going to refinance in the short term

Consider using an FHA loan to secure a 1–4 unit property with just 3.5% down and take advantage of tax benefits by living there for at least two years.