I was strictly asking for your guidelines to get a better understanding of what some private lenders are asking for.

I bought these homes strictly out of the amenities they gave me as an occupant and at the time I never considered being a rental real estate investor.  

However LA City have some strict laws in place. 

They are also more strict about the types of properties they lend on. 

In our case quantity helps us because of our strict purchasing standards.

However if you charge an owner occupant 6% and 4 points your total finance charge (less than 10% total) would stay under the (today's limit) close to 11.5%If you are going to sell with owner financing to owner occupants, then you just need to use an MLO/RMLO to run the numbers and that is just an extra closing cost that you can pass onto the buyer or just pay the cost yourself since the real reason to comply is to protect yourself.But none of that applies when we are buying with owner financing as investors, except for any state laws, and there are only a handful of states with strict investor limits.

***Please do not recommend  "Rent to Own" on this property, I know that would be the best route to take, but this property is strictly for Long-Term rental Only.

My contract with them clearly states that I have the right to sublet and/or assign the property.On the other hand my contract with the buyer strictly prohibits any subletting.

Unfortunately, FHA is a program which has guidelines that are extremely strict in most cases.

Tenants are not entitled to lifelong leases (although in SF with strict rent control, they certainly try).