Secondly a 7% rate with 1-2 points depending on LTV, FICO, DSCR, and prepayment penalty does sound fair/market standard.

Also, have you made any significant alterations to the property or if it were put on the market today, would it be indistinguishable from a standard 4-bedoom house (are there any extra walls for the SRO, constructed locks/barriers etc.)If its a standard SFR and the leases are very short term - there is a path that you could refinance this with a DSCR as basically a Short Term Rental and then potentially change strategic course back to SRO if needed at a later date

Just trying to wrap my head around the differences of if we got a standard mortgage up front vs. private equity and then paying that off by getting a conventional mortgage after seasoning. 

Standard PPL (Pay Per Lead) companies will sell them between $150 - $750 a pop.2.

You all went CHEAP and have hopefully learned a lesson:)Area where I was vetting them the prices were standard 10% monthly rent with $75 min and 50% first month rent.  

They're not required for single-member LLCs, but it is best practice.

When you engage with a new vendor, have it be a standard procedure that this worksheet or packet be filled out with documents provided before you will engage their services.

Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice.

"Is it a common practice to report it as a loss even though I fixed it out of my own pocket?" 

yes it would take a retooling the industry and industry standards no doubt..