As others have also noted, DSCR loans are separate from rehab loans which are often structured as hard money loans bundled with the upfront purchase.We fund both hard money for the purchase + rehab as well as long-term DSCR loans for the cash out refinance in BRRRR projects.

Quote from @Austin Schubert: Quote from @Chris Seveney: Quote from @Austin Schubert: Would anyone have a sample template of a proposal that you've used in the past that goes over how your structure a deal with a private money individual? 

Or, structure it as a lease option that expires in 1 Yr on the new home.

He said he does not physically visit the properties

Structural- roof, newer building no EPA?

we do a brief pre-application online before offering to physically show any apartments. 

Buy than Build by Walker Deibel is a great book for Business purchasing, it talks about structure and evaluating. 

However, many wholesalers are now buying and listing the properties where they don't physically live.The most important thing you have to know is whether they own the property.

The entity structure is irrelevant in regards to whether you can use the passive losses to offset active income. 

Check with your lender and consult a tax professional to ensure proper structuring for interest deductions.