Has anything been planned yet? 

Business is business. 

No, it's not a normal business practice and does not pass the smell test.From driving? 

Quote from @Jadon Grant: So, my business partner and I have run into a little bit of a roadblock.

Typically to grow a real estate business and raise money you are better off partnering with someone.

I like the business model with them really helping get it all set up.

The last point that I would make is you need to get into 3-4 pillars of the business that you will have for the long haul of real estate.

Suggest you get your game plan in place first then go forward once you have the goal in sight.

Your plan sounds feasible, but there are a few things to keep in mind:DSCR Loan Flexibility – DSCR (Debt Service Coverage Ratio) loans are designed for investors, meaning there typically aren’t occupancy restrictions like conventional loans have.

Every REI has a starting point, a build up phase, and an exit phase (this doesn't have to mean out of REI...it refers to cash).The key to determining this is based on an investment plan, and where the REI is in that plan.