After all move-in requirements have been met and a lease for the property completed, the Deposit to Hold will transfer to the security deposit to be held throughout the tenant’s entire tenancy.

Over our ownership period so far we have improved exterior appearance and certain internal features so that the units work better for the tenants and we have increased rents marginally.

We have up until end of 2023 where we could sell the home and not pay capital gains (we meet the IRS' ownership and use test having it been our main home at least two of the past five years).

Also, if you change to using an LLC, you can transfer deeds into the LLC, but won't be able to transfer existing mortgages.

Sounds like the ownership issue will solve your capital gains problem.  

While I do ask questions about leins, ownership etc, I want to be able to have a high level of confidence that the property can actually close before I spend any money on inspections or appraisal etc and ensure that the closing duration is long enough for all this to properly happen. 

Remark: currently the house price went up more than 15% and the housing market is very hot now.DHI Loan officer wants me to transfer the loan from DHI to FBC mortgage as an investment purchase but I don’t want it, I want to choose my own lender, then D.R Horton Seller turned around and said that they do not sell to investors and they want to cancel the contract.

The problem I'm running into is that every lender is insisting that any person with more than 10% ownership be a guarantor.

Unless you are referring to some specific paperwork that is asking for ownership %, in that case, you should be be able to put 33⅓%.

Assuming by seller financed you mean a deed transfer with seller taking back a note/mortgage (as opposed to a contract for deed), it would be out of the ordinary to have such a restriction.