Plus, they are picky on what regions that work in, which is another layer to look into.The second group, with the right experience, does 10.5%-11.5% Interest only for 90%, and if the values come back in their valuation, will do a second on the down payment at about 17% IO so it balances out at 100% LTC. 

It is annoying but if the extra occupancy calls for it it is worth the hassle.

I not only paid him his finders fee but gave hime $5k extra because he had to do more work to make the sale happen than he intended and because it was a good purchase for us.  

As far as renting garages or extra space my insurance will not allow me to rent anything to a non-resident.

I know here there are several extra requirements for a property to be used as an assisted living facility.

I always need to be busy so the "extra layers" that asset has is interesting to me and the value I can create is amazing.I like to keep busy if you can't tell.

Or they want to do something “extra” not covered by the insurance, or they want draws on their work?  

I would use the standard realtor lease form in your area and then look up common extra conditions landlords are using now.

She has been trying to BORROW the funds she needs $550K to pay off the Husband and another $300K of additional funds (Totaling $850K) so that she has the EXTRA borrowed funds to be able to make 2-3 years of payments on the financing (versus raiding her retirement account).

You would want to avoid a DSCR refinance right now for cash-out as those loan programs will carry prepayment penalties - refinancing post-rehab to get your equity back out of the property (based on improved value) would leave you paying an extra prepay penalty.