They are inherently more expensive than conventional financing and each DSCR LENDER has their own guidelines. 

Said it great .Especially  A legal contractor has more to lose than a homeowner .

The concern with places like Irvington will be once you move out and no longer owner occupy how do you raise rents legally.   

We’re being funny because there's still a bit of nuance here.There are strict guidelines and it's sometimes a blurry line between being an RE pro vs not.

Yes it's definitely legal, and I've sold a few this way.

what are the laws in CO regarding unlicensed wholesalers tying up property advertising it and collecting a fee at closing is that even legal in that state. ???

You and this private person you met hammer out the details of the loan at the kitchen table so to speak and you seal it with a handshake and your reputation that this Private Person already respects or whomever introduced has vouched for you.But if a man opens a lending company tomorrow with 50 Million of his own capital and he checks in on the HML market to see what it bears and he copies his products and UW guidelines and now is he PML or HML? 

When you add up legal fees, lease fees, loss of rent, etc. it can add up.

You could easily niche into that via even just the legal realm and would probably never have to step outside of it.

Link to article about Falls Event center founder that recently went under & is facing major legal issues.