Just like your traditional investment purchase, DSCR only requires 15% down, in some special cases like non-warrantable condos - 20, or 25%.Other Features:Available for purchases and cash-out or rate-term refinanceNo limit on total number of propertiesMaximum loan amount $1.5 millionNo personal income used to qualifyQualifications based on property cash flowNon-warrantable condos OK40 year fixed interest only availableProperties can be in LLC's nameAs a lender who works heavily with investors, DSCR is one of my favorite go-to loan types that I use to get investment loans closed quickly and easily.

Ensure that the condo is warrantable.

Should someone ask for a repair during showing I do that if it is warranted.

Then give the tenant a notice to vacate at the end of their lease when the timing to give such notice to vacate are warranted per their lease agreement.

I don' think this reason warrants a change in lenders, especially if that lender is affiliated with that particular builder but I will chime in. 

They obtain a search warrant and recover several more skeletons in the walls.

Owner Occupant/ Leasing Specific - One requirement for a condo to be warrantable towards Freddie Mac and Fannie Mae guidelines (which allows homebuyers to use conventional financing) is 51%+ of the units need to be owner-occupied or a second home. 

BTW I would argue that one rental is enough liability to warrant an entity. 

The other side of the coin is that there will truly be a few evictions that are not warranted, and you can look deeper into an eviction case.

We are trying to figure out if this situation warrants us talking to a real estate lawyer, which we know would be very expensive...or if we just chalk this up to an expensive lessons learned and just do what we need to do to get the property legally permitted for the size of the house.Thanks again for your advice.