I could also ask him to provide a report from his business (he is self employed) of his P&L and transaction reports to make sure he is making money etc. 

If these are the common lawsuits all CRE professionals have, I think we have some big problems in the industry don’t we.

If there are common areas in the commercial property, then sure you would need to do the accounting regarding who pays what and what's collected among the various tenants. 

As a region, the phrase “The Poconos” is linked to a wide variety of areas that have much of the same allure in common.

The most common benefits a landlord can get from an arbitrage agreement are: reduced vacancy expense, decreased maintenance costs (most arbitragers agree to fix any damage done by guests), increased rent (most pay a premium), reduced number of hours managing the property (aka it's more passive)Some less common benefits, but still worth mentioning: Using the property to host their own guests at a lower rate during the "vacation season", Revenue sharing, arbitrage managing landscaping, and other management tasks. 

For you, it will likely be business income / ordinary income(non portfolio) where it will be deemed active / passive depending on your level of participation.There are some court cases out there where people who originate 4 or more loans in a year are moreso deemed in the trade or business of lending money.It will depend on the original poster's taxaccountant to determine how he/she will treat the income.The one con of it being business income is that it may be subject to self-employment taxes.

Is that common in your area? 

As long as the property generates enough cash flow to service the debt, you qualify—without the need for personal income verification.This type of loan is ideal for those serious about growing their real estate portfolio, especially if you’re self-employed or have irregular income streams.Why DSCR Loans Matter for Real Estate InvestorsWhen it comes to real estate investing, traditional loans can often be restrictive, requiring personal income verification and imposing limits on the amount you can borrow.

For investment property, I would say commonly you are going to have 80% to 75% LTV. 

Through agency debt at ~67%, pref equity from an institutional investor and common equity from our investor-partners.