My reasoning is because I simply do not qualify for a loan for any properties out here and units that are being sold off in smaller multi-family properties have ridiculous HOA rules that make it quite difficult to cash flow or just pencil out in general.

The sellers interest is the interest and transactional convenience, when a lender is involved there are costs associated that can often be rolled back into the loan provided the loan to value (LTV) based off the appraisal is sufficient. - Higher rates.

Matt,Do the numbers work for a DSCR loan? 

Experience and your track record of past completed renovation loans will be taken into account.

I would do a bridge note at 50% LTV, take the cash out now, put you and your sister on the loan, build the ADU now (time is money)..

The seller however does not have any documentation to show he made any reasonable efforts to evaluate the borrower ability to pay the loan.

This will be a commercial loan since you won't be living there.

For the rehab loan, I would look at options longer than a 12-month loan.

The loan is conventional and they are asking for Employment Verification saying I work remote in order to settle the occupancy rule. 

Pricing and rates change constantly so if you are seeking cash out of a rental property you can entertain a second DSCR equity loan up to 70CLTV to keep your first in place or take a look at a full new cash-out option.