I would suggest to get in touch with the landlord of a similar facility in your city and find if he had any challenges/issues with the institute who leased the property or if any from neighbors and how he handled them.

All security deposits shall be held by the landlord for the tenant, who is a party to the rental agreement, in a bank, credit union, or depository institution which is insured by an agency of the federal government.

While I understand that I come from a fairly long and hardened institutional background, I am absolutely astonished by their apparent commercial success.  

Is there no requirement to identify other lending institutions?

From $400-500k boutique hotels, to Lake or Riverfront RV parks for $1M+ to 300+ storage units for $2M these are not institutional asking prices (as are common in neighboring States.) 

This is a great question, something we often see in the institutional LP world.

In fact, its so competitive in trying to buy a SFR owner financed note, that most note investors have gravitated to buying non performing, under performing or re performing notes from banking institutions, or the asset disposition firms that represent them.  

Of course, buying these loans need cash, most of the buyers are large institutions. 

But there are also syndications out there that charge more "institutional" level fees, say 1% acquisition fee, if any at all. 

All institutional lenders, DSCR, conventional and government send out disclosures that are very clear regarding the length of time and the percentages of the prepayment penalties.