If you are using a DSCR loan, your personal DTI will not matter.

I would like to work with more private money lenders because the costs can be a little lower, when there is not as much overhead involved, such as their office space, HR person or department, payroll processing, etc.

If the ADU you're proposing is the make-or-break between this deal penciling out or not, AND if it is pivotal for your plans that it be the height that you are planning, I would personally advise you to abandon this deal. 

@Rob WallaceCredit unions typically do not lend to LLC’s I will focus on another topic - I strongly recommend your operating agreement have terms preset if things personally go bad and one has to buy the other out.

These are advantageous as they look mostly at the asset's for the loan not necessarily your personal statements as much as conventional loans. 

I can see why the landlord wants to use their person . . . they probably want to make sure its a quality repair. 

You will need 20-25% down and a commercial loan for the rest.Most lenders will want to lend to an LLC with you personally guaranteeing the loan.Typically, each MFR would be purchased under its own LLC, for liability purposes.Each LLC would then also need its own bank accounts for collecting rents and paying expenses.

Together, this structure will protect you personally from lawsuits, as well as keeping your investment properties isolated should legal problems come up down the road.

I have personally never heard of the county having any say .. other than I do get calls from (state of Colorado) Tax collector after I purchase something and they want to know why we paid less than market value.. but they contact after the fact..

DM me for the person I worked with.