Could someone explain that to me or if there’s anyway to deduct those expenses.Not sure how we can explain it, because you already included an explanation in your question.

Lots of other services are included at no cost (advice, doc review, debt collection letters, etc). 

Invest with syndicators who have a narrow niche and proven track record.For example, if an operator has done 5 or 6 workforce housing value add deals in Dallas, and they are offering a similar deal now, that would be encouraging.if however, their current deal was a brand new luxury Class A building in Charlotte and this was their first acquisition in Charlotte and their first class A deal, as an LP I would pass.Find operators who do one thing and kill it in that space.Find operators who own or have gone full cycle with similar assets in the same market.For example, my firm, Spark Investment Group has a very narrow niche - sub 100 unit MF or BTR in Greenville SC.

His reason was the only thing he knew to do with the proceeds was to loan it back out at 12%, and he would be "behind" where he is now in cashflow.His proceeds would have given him options up to and including PE, but he is a simple man and in his case holding was the option for now. 

I am being told by these lenders that I need two years of rental income included in tax returns for them to not use 75% of the rental income per the lease.Essentially no other debt that could help reduce the DTI.

Typically this takes 6–9 months, including 2–3 months for permitting and 4–6 months for construction.You can browse their current plans online, with design costs ranging from a few hundred to close to $2,000: ADU Fast Track Plans2.

However, does that include people who wouldn’t qualify?

One thing in real estate and probably most other businesses is that most people including me don't know how to measure and evaluate risks.  

Investing always looks scary I don’t wanna lose money. my monthly payments are 3k including taxes I am in NJ so property taxes on an acarage house is still high Investing can be scary. 

I also included some instructions to help.