Is this a common thing most DSCR lenders can do? 

In the worst-case scenario, your entire IRA can be considered distributed. 

It is very common for a PM to hire an experienced lawyer to handle the eviction process.

Running title on a Deed in Lui is to those of us that trade in the bizzness common knowledge but agree you take a mom and pop starting out..

The only scenario I could potentially see it being an issue is if you requested a full appraisal to be completed for a higher value. 

However it could be location,  Common area, size, laundry, tenant qualifications (in rough areas you are not going to get many tenants with unblemished credit), parking, look of surrounding properties, etc.   

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

The "what if they..." scenarios in an STR are endless.

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. 

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.