Most of the "not so good" ones I had to find out the hard way, having spent extra time, effort and $ to be unpleasantly surprised.I have already went through all the permits and old records looking at microfilms for hours at the city's archive office.But I still have a lot of questions that I believe this person can answer.  

As it stands, my K1 states a high amount of business ordinary income (Box 1) along with a minimal distribution amount (Box 12).However, a loan officer recently pointed out that he can't use any of the business ordinary income for my DTI and can only use the Distribution amount.

Good question but any income that has not been spent on the categories you described would be considered taxable. 

The amenities that enhance the guests indoor and outdoor experience are important too since a good amount of time will be spent on the property.

I have spent the last 3.5 years working side hustles, cutting spending, doing anything and everything I can do to have enough money for a down payment, closing costs, and rehab expenses.

I just got out of a partnership on buying some flips after not doing any deals together at all, but we formed an LLC together spent the money on the attorney to draft the docs, LLC, and OA for us.

I know several HMLs who lend at 12% with 1-3 points.You might be able to get 10% if you had a long-standing relationship with a private lender but I think you'd be safe to assume 12% if you're just starting out.Yes, HMLs usually want 65-70% LTV max, so that would be 30-35% down.New HMLs will loan that on the after repair value (ARV) but smart/established/experienced ones will loan 65-70% of the purchase price and then set up a draw schedule for the rehab, usually with the borrower funding each stage and then getting reimbursed after an inspection which verifies the funds were spent on that stage of the rehab and it was completely finished.So if you bought something for 100K, the lender might loan 65K, you'd bring 35K to the table.

He claims that the plumber spent many hours on the job, but I know it's a lie because I have many other properties where the same issue was fixed for less than 1/2 of the price, and did not require much time.

But we have a dedicated 240 circuit out of the box .. 

That way your dad would get his equity tax free and then he could pay you back for money spent on the updates.