However when I spoke to a mortgage broker who explained that any MF property 5 units or over is considered "commercial" and would require significant paperwork regarding historical cash flows and financials and a higher rate.

Essentially, the government takes taxes from W-2 / Salaried workers  FIRST, because they just don't really trust us.  

I suggest to have an attorney handle the paperwork and can also buy title insurance. 

The other item I might add is that if you are under contract and you go to change financing on the seller... they do have a right to turn you down as you are changing the terms of the agreement essentially. 

I'm curious as to whether other investors are registering and dealing with the extra hoops and costs, or essentially ignoring it. 

Plus, the paperwork required during construction is significantly simpler.

It's hard to really summarize all the ins and outs of capital stack, but it essentially refers to the different types of debt and equity you have available to you. 

STR are hard for this, most banks are slow to become comfortable with newer trends and without operating history they can't underwrite your income because you are essentially signing 1 day leases on these properties. 

This is an interesting twist where because of a public health crisis landlords are forced to essentially extend credit to renters who are pay check to pay check. https://www.mercurynews.com/20...

Add in the services of a transaction coordinator (~$400) to help with paperwork and IMO it's the most effective use of your money with the least amount of work.