I know a few people who filed bankruptcy to stop an HOA foreclosure when they were foreclosed for non payment of fees, fines and court costs associated with non compliance issues.  

For example, we could be at 13% and 3 points on something like that assuming the GC also has some skin in the game on the down payment.

I ask because of course there is the ability to put more money down to get more advantageous rates and also lower payments because your are borrowing less, but this will affect your cash on cash ROR. 

No the fact that the title to the property will be in an entity instead of a personal name does not erase the debt from your credit, and a lender will still factor in the mortgage payment towards your DTI.

I was preapproved for the dscr loan and have the 25% down payment and was planning on buying a 6 unit apartment that a realtor had shown me but another buyer bought it first before I completed my process so now I am looking for another multi unit property. 

I wouldn't be surprised if you PM quickly changed his tune if you mentioned that his non-disclosure is a violation.

With that said- there are other programs that can accomplish similar benefits in terms of minimal down payment options, etc. 

I would prefer not to refinance as it would significantly increase my monthly payments.

Save that cash for reserves and the down payment on your next property.

As a non-attorney, I'm not sure why it would be illegal for the city to change their regulations regarding str's.