If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

When vetting a hard money lender, ask about their interest rates, loan terms, and fees (origination, prepayment penalties, etc.).

I’m ok with prepayment penalties before 3 or 5 years.

With penalties and interest.  

I also recommend explaining what the penalty will be if she's not out as scheduled.

This amount represents a reasonable estimate of the actual damages the owner may suffer due to delay, and the contractor agrees that this sum is not a penalty."

The mortgage interest rates are more favorable and so are the terms (no prepayment penalty, as little as 3% down payment for a first time homebuyer, etc). 

Indeed, it was same for STRs for a long time and I think that is why seasoned hosts are having hard time understanding the downside of using multiple platforms since there was no penalty of using it at all.

DSCR loans carry Prepayment Penalties, so unless you are comfortable staying in a 9%+ rate for 5 years, I would suggest just going with a normal 20% down DSCR. 

If you're allowed to object and you're still within your objection period, you may want to review your title commitment for objectionable matters that may give you a right to terminate without penalty.