Are they going to start paying down that credit card debt, turn over a new leaf, and avoid bankruptcy for the next decade? 

Avoiding Licensing Requirements and OversightBeing licensed often means adhering to strict state regulations, such as disclosures, fiduciary duties, and mandatory continuing education.

To help avoid a lot of these issues I would think about buying a "Modular" or use a "Tiny Home" vendor who offer these in many states.

@Rosalyn ScofieldI always suggest that investors and homeowners avoid home warranties.

My main concern is how to avoid activating the due-on-sale clause when transferring the deed.

Are there any red flags or common mistakes investors should avoid when reaching out?

You’re giving very limited information which forces people responding to cover unnecessary points. 

What I am getting at, is if it is worrisome, or avoidable, as even a good deal(see scenario above) will raise DTI In that case, yes DSCR loans closed in an LLC will not report to personal credit and won't affect your DTI. 

I am here to tell you ways to avoid this from happening!

By doing this, you’ll avoid any surprises down the road and ensure the deal still makes sense for you financially.