Because based on those answers, you can just get a conventional loan. 

I see the base interest rate for federal lending is 4.25%–4.50%.

There are two options I have offered and I want to get a check on here if I am off base with my offer or if I need to push harder.

Or just wait until a year passes and he can rent it out  Following - I'm based in California in The Bay. 

Based on most of the work I do with HMLs/PMLs on behalf of my clients, 12% at 70% LTC seems a bit more conservative.

Welcome Jorge, I'm also based in FL. 

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth. 

It's called a payoff statementif it's a big lender you will not buy the loan as it will take forever, you are better just paying it off. you then can foreclose based on the total balance owed to you which is both loans and any accrued interest. regarding fixing property or selling as is, that really depends and needs to be evaluated on a case by case basis 

I am based in Edmonton, Alberta.

The reliability of this method depends on if the costs provided by the contractors or subcontractors were based on actual costs or estimated costs.