Generally there is consensus that DSCR Lenders can only offer a 1% prepayment penalty for up to 3 years in MI, but some lenders have recently reportedly been flaunting this rule - I would just tread carefully here in this area, generally not advisable to get potentially tangled up in a flawed legal doc with a non-sophisticated or fly by night lender

Also, their past decks don't provide the type of basic information that any sophisticated investor would need to evaluate them (like skin in the game etc.).

When market changes, even the most sophisticated sponsor could collapse.At the end of the day, it's better to become "active investors" where you know every single bit of your investment, your market, your realtor, your contractor, what's the actual repair cost, actual rent, appreciation and so on and so on.

Investors who aren’t experienced, knowledgeable nor sophisticated are taken by suprise that their “promised” return hasn’t materialized.  

You do not give up easily (sarcasm).Where you using any approach that is more sophisticated? 

I think the truth that your post brings is in the level of sophistication and market insights of the investors and investment sponsors that are prevalent on these forums, the amount of money we are talking about, and the general idea that real estate, even when directly owned, is passive in nature.

I've owned a Payroll/HR/HCM company for the last 15 years and am now looking to transition my time and resources to help my son with his new Wholesaling and Real Estate Investment company. 

If you have enough unit it will make sense to have cleaner on your payroll but to starting off, most common sense is to find a very high quality, reliable cleaner that works with your budget.

Most often, when this is discussed, it is suggested that using a line of credit - HELOC or otherwise - to receive your regular payroll deposits is the favored usage.

For small projects and so for the vast majority of sophisticated investors, the DLT is years away.