I was sent an offering memo by a broker selling a multi-family building in an area no reasonable person would even consider affordable housing material yet the marketing materials made a point of emphasis to detail how the property would satisfy the need for affordable housing.

Instead of debates and personal opinion, look for proof https://www.ladbs.org/docs/default-source/forms/plan-check-2017/single-family-dwelling-duplex-plan-review-list.pdf under G (Interior Env) which defines the minimum requirement of a habitable room (aka bedroom or bathroom).

A person would be fvckin crazy to pursue this type of financial suicide. 

The concern with the DSCR loan is that I need to make the property present as though it's rented to individuals during appraisal (tough since it's a working rehab facility now) and must create another lease that shows the tenant as personal and not a company.

Can you send me a link and/explain from either personal experience or an example of when you seen that happen.  

@Tim Bergstrom I am a lender with a local bank here in Louisville and an investor personally as well. 

Have you calculated what your (monthly nut) is you need to survive business wise and personally?

I personally again in my opinion only.. but these guys could be fake lenders.. for sure HML  do not have a requirement that they can only lend to a corp..

You can advertise historic performance.  

I cannot comment on the performance of his fund though.