You are correct, it is common for DSCR lenders to require the borrower to be a business entity in Florida, and some other states sprinkled across the US.

I don't think you are going to be able to get insurance for two separate living units in a single-family when they are both illegal and likely do not have the correct egress windows (basement) for fire safety which could subject you to huge liability if something happens to either party.

Made sure to check the ledger and T12 to ensure that the tenant was qualified correctly before purchasing the property.

You are correct that they are headed for serious trouble. he number i called..cant remember his name but if you see other posts on here he has posted 9196045703 Brent? 

You will need an attorney to properly structure the partnership and you will make sure you do it correctly.

I was looking into fixing up and renting a single family home but I just want to make sure I’m starting off correctly.

With how old NYC's buildings are, everything has to be grandfathered in until the city calls for correction which will happen when he lets the inspector in.

Did I understand you correctly?

I demonstrated proof and evidence backing up that everything I was saying is correct. 

I can’t r ember where the link is to lists but if you google it it should come up on hud.gov somewhereThat’s correct.