As a Banker my advice is to always have several conversations prior to and be very transparent with your Banker or Loan officer.You can use real estate to position yourself into a better or bigger home buts is like chess there are rules and you have to know in advance your next few moves. 

Who is a hard money lender doing fix and rent and DSCR loans sub $100k? 

If its under water Also who was servicing the loan and what state is it in.

I’m having troubles getting approved for the loan. 

A better option is for the tenant to take out a personal loan, pay me in full, and make payments to the bank.

I checked into an FHA OTC loan but it had mortgage interest rate over 8% and lifetime PMI payment which I would like to avoid.

, etc.) then it really was, in order (I guess) to induce a loan or some other “benefit”.  

Do you have a loan on the property? 

They would rather have a end buyer with cash or a loan buy it. 

I’m going to lend  to a few people I know with LLC ‘s  on some mortgages and receive interest , I am not putting myself out to public lending just some commercial loans as LLC single member pass through  , do I have to pay local taxes in Florida , I have no brick and mortar , no employees , just LLC in Florida and live in Texas , there is no work involved I just receive interest .