But I'll play along...   

What role does being named "Additional Insured" play within the context of a Lender?

And on top of that, I’d be paying rent or a mortgage somewhere else.I understand real estate is a long-term investment and that appreciation and equity plays a role, but losing money month after month, even post-move-out, is hard to justify.

If she wants to play in small claims court and waste everyone's time you can't stop her.

Quote from @Alex Todd: @Basit Siddiqi and @Sean Graham let’s play this out a bit for discussions sake.$3M MF property, depreciation and mortgage interest are ~$180,000.

He plays the game and was able to let them use 100% of my lease agreements amounts.

But you have to play the hand your dealt in areas you live and work in..

Also, my personal investing goals & acquisition reflect a long term play and not a short term one.

These loans are based more on the property's income potential rather than your personal financials, though your personal credit might still play a role, especially if your LLC is newer.

I told them I'd understand if they need to cancel but I'd prefer to play it by ear.