I think there is another case study of using federal land for affordable housing in DC that has been held up with red tape for decades.  

If he lived in the same place for four years, that should reflect on his credit score.I think you've found enough red flags to justify denying them.

@Jake Barrutia I personally see this as a huge red flag too.

Additionally, these investors can provide warnings about potential red flags, ensuring you hire reliable contractors and property managers.

A conventional loan may come in slightly cheaper, that's true, but the red tape on conventional mortgages is excessive to say the least.No Reporting on Personal Credit: DSCR loans are kept off your personal credit profile, which is perfect for keeping your personal and business credit separate.

that said the other issues are a red flag.  

Also, look out for red flags like neglect, possible liens, and unpermitted renovations.### FinancingMake sure you have your financial matters in order.

Have you ever had a root canal?

It's definitely an outside-the-box idea to transfer the property to an LLC before applying for the HELOC.If you move the property to an LLC, lenders might see the transfer as a red flag.

Take it with a grain of salt or a whole carton or morton's iodized, because at the root of it every investor is different and so is every unique investment situation.Thanks for all the great insight, Sean!