I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

Monthly expenses $390 a month I am going to pay a one-time fee to find a renter with property mgmt so I am not paying a monthly fee, i would like to hire handymen instead of a consistent property management fee but I am a novice so please inform me!

Closing is cheap, as there is no origination fee, no agent fee (when I find my own houses), very quick and very easy. 

That is why they are probably pushing hard to get you to accept this applicant.Another option for you is to negotiate a fair Termination Fee and then have them turn everything regarding the applicant over to you to review and sign YOUR lease if you decide to continue.If you want to be cheap, then they'll probably keep pushing back and make this messy.

In theory my only costs would be purchase of the lot + associated fees, taxes, and engineering services (which I could do a portion of on my own time). 

So, you are correct, 9 times out of 10, a client is going to need 20% cash down on a 5+ asset plus fees, closing costs, etc...If you can get the seller to take a 2nd position for let's say 40%, then we would come in 1st at 50%, the seller at 40%, and your buyer at 10%. 

Even after fines and penalties are issued, they refuse to accept responsibility and want to charge additional fees to correct their own errors.

There are services that act as registered agents for an annual fee.

By my understanding, they pay a fee to apartments for the background check and application, right?