Here is a list of states divided into three categories, based on my internet research.  

To summerize, a DSCR loan, aka lite doc or business purpose loan, uses the rents you receive on the property and divided by the new loan PITI to receive a ratio.

Is there any way to divide a lot under SB9 without having to live on the property for 3 years as required by the current rules (at least in Riverside, CA)?

Assess Your Goals and Current Structure: Beyond replacing your handyman team, it’s important to evaluate your portfolio’s current management framework and clarify your long-term objectives.How are responsibilities currently divided among you and any co-owners or family members?

And using the 135 and 400 as the dividing lines.

If it's not already grandfathered in as a multi-unit, you take the lot area divided by 750 sqft/du (for R-8 zoning), and that's how you come up with how many units you can do.

Instead of owners receiving their own rents, they pooled the money for all investors and divided it out according to the percentage of their investment.

I just want to make sure we are dividing out the cash flow we can spend versus the cash flow we should save.

For example, instead of an initial 6-month lease at $1,200/month, and then re-renting it in the summer with a higher rental rate, you could market it as a 16-18 month lease term (again, great suggestion by Tim) at $1,600/month with a "1 Month of Free Rent" special which you could either divide evenly across just the first 4-6 months of the lease, or prorate over the entirety of their lease term.  

Take the few extra hours it may take to originate the bank loan and divide it by the added finance charges and its normally more than most borrowers time is worth.