I'm curious what amount of coverage to shop for? 

Getting a lower rate will also depend on the amount you're putting down.

.$847 in the bank699 Credit Score133% revolving utilization/over the limit maxed out personal credit cardsQuite a bit of other high interest debt/loans borrowed during the first year in business$3,580,000 Appraised Portfolio Valuation$2,139,400 DSCR Mortgage Debt in my LLCs$1,440,600 Equity (Appraised Value-Mortgage debt)8 Remodeled SFRs1 Converted Remodeled Duplex2 SFR Remodels currently in process2 Apartment Buildings - 13/14 units occupiedA little more experience to say the least234 Audible books in my libraryAs I'm sure any experienced investor can gather, having the sizable amount of personal debt as I do, supplier house account payments due, PMLs that need to be paid, etc, not having liquidity/any money in the bank is an ISSUE.

You may have to pay UDFI which relates to the amount of debt financed on the property. 

This is a small property so the smaller items don't amount to too much. 

Real Estate is not just about the money made money per deal- it is about the amount of deals per calendar year times the amount of profit.

They were thinking of planning another one that required massive loans (7 figures). 

If you're going to put the purchase price of the home in an escrow account you would still be using the same amount of capital. 

It's likely they need to get a certain amount, possibly for a mortgage.

Raising capital thru syndication is a lot more realistic if the sponsor has a significant amount of their own cash to invest.