Over the past 3-4 years, most DSCR lenders have restructured the prepayment penalties to be triggered even with additional payments to principal. 

In Austin, I know Horizon Bank has been open to more creative financing strategies too, so it’s worth checking with them.One thing to keep in mind is that the terms can vary wildly depending on the institution, so I always recommend reaching out to a financial advisor who’s well-versed in life insurance-backed loans before pulling the trigger.

But, unless you’ve got a unique situation or tremendous wealth, like enough to trigger an inheritance tax, it MAY fit your needs at a very reasonable cost. 

have you thought about changing and are waiting to pull the trigger? 

I got a letter from my mortgage company that said I can move the title into an LLC if I like without triggering the due at sale clause. 

It seems the most likely issue is simply having your personal names as the deed holder listed in a complaint although again, based on what you shared about your sound operations your insurance should cover any claims that would arise since you wouldn’t be triggering any coverage exclusions.

This is because loss of rents/income is almost always triggered by a "covered" peril (aka covered cause of loss). 

By "positioned" I mean - ready to pull the trigger when the right deal comes along.  

But I can still use an FHA loan and then transfer the property for $1 to obtain maximum protections of an LLC with maximum leverage.They are told this can trigger due on sale clause and will still will be paying transfer taxes based on the properties assessed value + deed prep, recording and misc. title expenses.

Depending on which brokerage you use, you could possibly borrower against your securities holdings with a line of credit (similar to a margin loan) if it's not a retirement account. 30-35% of the balance would likely be within reach, but make sure you FULLY understand margin calls and when they would trigger.