@Brittany P.Yes some states like Florida a cfd is treated like a note so if you have to foreclose it’s my understanding all proceeds above go to that borrower.

After 12 months borrower defaulted.  

I see it time and time where a borrower tries to save on points, they go direct and end up falling out.

Conventional financing is geared and regulated for the owner occupied homeowner and is designed to protect that borrower from poor lending practices.  

You do not even have to borrow the funds  for rehab, and rather use someone else's money for the acquisition then use your funds to rehab the place.

Qualification is based primarily on the property not the borrower so your DTI is not applicable

That said, lenders may allow these transfers without triggering the clause as long as the LLC is owned by the original borrower (you).For your question about which account to use for the down payment, it generally makes sense to pay from your personal account, especially if the mortgage is in your name.

I think Chris nailed it perfectly - you have to take your DD to another level and also be in a position, both financially and contractually, to take control of the situation if the borrower defaults.

If so they would have sold their house for (ultimately) $75,000 more than they did; received 9% interest (probably as much or more than if they invested the proceeds) on the amount they were waiting for, and if by some small chance the borrower/buyer defaulted, had an opportunity (along with the frustration, cost, etc) of reselling the property and obtaining a “windfall” profit.2.

It's a different kind of program where we don't even consider the DSCR on the property, we mainly just look at the borrower's credit, their investment experience, and the property itself (where it's located, value, use, etc).