They do all the yard work and clean as part of their daily chores, etc. but the program charges a substantial amount of money that is paid by insurance companies, so they cram a lot of beds in each room because they are making money with more clients.

Who they are using for tax accounting, property management, general contractor if any, mortgage broker, due diligence company, cost seg, insurance company, and etc.Review the additional fees\costs, if any, and determine if they are out of the norm depending on the experience of the sponsorship team, investment strategy, and asset. 

If would be easiest for this transaction if I personally closed on the property, cut the $30k check and signed for the $500/mo (or whatever) mortgage, then informed him that he owed me $15k and $250/mo for the next 30 years.Then as rent checks come in (let's say 6 units at $800 apiece, so $4800/mo made out to the LLC), the LLC would pay the mortgage (-$500), the property manager (-$480 at 10%), set aside funds for maintenance/capex (another 15% of gross, -$720 in this example), any applicable utilities, taxes, insurance, etc (say another $500), that leaves us at 2600/mo. profit.

Account Closed have you considered cash value insurance?

If the only way you can afford a property is when you have rental income, you can't afford it.Without looking at a specific property, they can only tell you how much you can afford without the rental income.The biggest factor is your monthly payment vs your gross income.Lenders look at two ratios: living expenses and then total debts.First ratio - Total living expenses (mortgage, property taxes, home insurance) vs monthly gross income.

At the hearing I had my closing package that included a copy of the recorded deed and proof of title insurance.

no flood insurance required as it sits up high.

Most are also licensed real estate brokerages so they have all the proper licensing, liability coverage, E&O insurance as well as remedy through the State’s oversight board.

The deposited funds can be used for signature loans on certificates of deposit, loans on the cash value of life insurance policies, or loans secured by 401(k) accounts."

My guess is your lender just wants someone experienced with insurance.