If you own more than one house in your personal name and there is a lawsuit that ends in a judgement, they can literally pick and choose through your assets until the judgement is satisfied.

@Charlie Cameron - Typically a PFS, REO schedule and tax returns will satisfy lenders, although follow up documentation may be needed for specific questions. 

A commercial lender that will be making the construction loan just wants to be sure they are first in line if things go sideways — seems to me that making the construction loan the preferred loan and the land loan a subordinated loan would satisfy that requirement.

They have to have skills that I can't get from a contractor.Sounds like this guy satisfies #1 for you, but if he's basically going to just be a contractor on the project, you can hire other contractors without having to give up equity.Also, I'll *never* partner with a contractor, simply because it makes it very difficult to fire the person as a contractor if he's not doing a good job. 

Lawn care may be a little high depending on the area and size of the property.My question to you is are you satisfied with putting such a large amount of cash into a property only to get under $100 a month in Cash Flow and a measly 1.58% COCROI?  

If you are satisfied with everything except pricing,   perhaps you should ask to renegotiate terms,  pointing out stable tenancy,   low management overhead,   and showing competing bids from other PMs at a lower rate.

As long as you lived in it for two years, you’ve satisfied the rule and can use it however you want.

@Eric Figueroa Upon further review of my debt to income ratio, I have not had this job nearly long enough nor do i make enough money to satisfy a strong debt to income ratio.

Provide them with a warning and if they don't satisfy it, then the appropriate number of days notice - either 60 days or 90 days (I think)3.

To fully satisfy this requirement (unwritten but supported by CPAs and IRS) is you live in the property (one unit) for a minimum of one year and you will have satisfied the Occupancy Clause.