If you find something out there higher than 70%, it's not a conventional mortgage so likely doesn't have the nice rates & terms that are usually associated with conventional loans.Conventional appraisals on 1-4 unit properties will use the Sales Comparison approach, so even though you've nearly doubled your income, you're still going to be bound my recent comparable sales.

E&O insurance is typically provided to you by your broker, usually a fee per closed transaction, $50 or so.

Usually they will inspect a portion of the units if it is over 10units and then look at mechanicals, roof, structure, exterior, etc.

Totally vacant properties or ground up development is minimum 1 to 2 years before a return but usually larger equity growth on the back end.

Share both positive and negative things that have come up using private lenders, also any advice for beginners.

I will usually walk the property with the inspector and my General Contractor so that he can confirm or adjust my Rehab estimates.  

There's usually some good locals that monitor that forum and using other locals who have experience with lenders is the best place to start. 

Few options:  Non-bank lenders like Lima One and Visio usually do loans based on the performance on the property.  

I have seen too many negative reviews of pool houses complaining about floating leaves in the pool (yeah!)

I'm not sure what to think about the negative cashflow.