Its a tough subject because logically, they are joint and several guarantys so rationally a 100% guaranty from each of two people (one 740 one 680 for example) is ALWAYS going to be better than just one 100% guaranty from someone at 740 (so it wouldn't make sense to have a better rate for the latter)The problem is that there is fraud and "straw borrowers" out there where someone who is not involved in the property signs on to boost score and terms - so many DSCR Lenders in response either do the "non-rational" thing and price to the lower to avoid the fraud or use the higher of the two (and either be a little loose with things or just stay vigilant on any funny business)

@Thomas HaessigImpossible to really provide any type of in depth response based on information provided.

This is because there is a greater likelihood I become personally responsible for making payments on the $80K loan

Being flexible in a way that still protects your investment can help build a better relationship.However, if they’re not responsive or don’t show good faith, you might need to take a more formal step, like issuing a notice to pay or quit.

Even if the property owner LLC is named as a co-defendant for construction related liability if you implement the steps I mentioned in my earlier post,  in most instances construction related liability can be deflected to Builder or responsible sub contractors. 

@Mike Sferayou got some great responses to this including from @Kevin Sobilo and @Bill B.there is no right answer to this question.right now, i am looking to minimize outlays on rental properties, and am having success with seller financing. 

So far he has been very responsive and goes over and above for sure.

Great post and many of the responses are valuable here. 

Readers should seek professional advice.Thank you for your wonderful response, Ashish!

Based on your response that's where I'll begin then follow up with a contractor for the ticket price.