An alternate viewpoint is that the group is closing so many deals because they have an edge in a competitive market.

It kind of seems like you are looking to call their bluff but that only works if they are raising rents above market and you have an alternative. 

If the rental income doesn’t sufficiently cover the debt payments by their standards, they’ll limit the loan amount, even if the property is worth more.You could try a few alternatives:•Look for lenders who specialize in commercial real estate and have more flexible DSCR requirements.

Alternatively, if you can find a great GC who you trust, then you won't need anyone else.

Sometimes the items are not a deficiency but merely a recommended alternative way to complete something and those can normally be talked away without even making them into the report.

I imagine other people might have good alternative suggestions too. 

Bigger Pockets sent out an alternative investment article which included ATM investments as a suggestion. 

I'm just hoping someone with actual knowledge of it can provide some information that offers an alternate explanation.

It could impact your home equity and financial security.For a safer and more specialized alternative, consider a Fix & Flip loan. 

Establish an emergency fund and target stable long-term rentals or short-term rentals in markets you understand.House hacking or private lending can offer alternative entry points depending on your risk tolerance and hands-on involvement.