Both are obvious because no one takes that long to structure a post with headings and subheadings for one person; we all know it's cut and paste.

This is not an unusual structure for investors with loads of experience and model that is proven to work, but for someone just starting out it makes no sense.Cheers!

In addition, the capital outlay starts long before any income and the detracting of something from the primary structure even if it is just yard space.As indicated, my original protege made a lot of money (over $500k) on a land transaction associated with a large count ADU development.  

I invest in a couple states and I also am a agent in new jersey. my rule of thumb for a client is when they say I'm hoping for in a sentence describing a property I dive a little deeper into there goals because it sounds like they are trying to fit a square block into a round whole.

That's the key component that is usually missing when I hear other entrepreneurs/investors say they don't like QBO.Something else to keep in mind is your entity structure and how your entities file tax returns.

Agree with @Chris Seveney- people LOVE making their ownership structures so complicated when you can mitigate risk in so many simpler ways. 

Conventional loans that use your debt to income / DTI to structure the loan require 12 months seasoning to use the new appraised value for a cash out refinance.

Keep it simple versus some of the esoteric structures being pushed.  

Would you have any recommendations on how to structure this private money loan that makes sense for the lender?  

In case helpful the below covers more about how DSCR loans are structured.