For example, where a duplex or quad can secured with standard residential financing, a medium sized apartment block will require things like environmental assessments, etc... 

However, most states have a State standard contract that all realtors in that state use, so the seller's agent will probably expect you to use that. 

The rest of the terms look pretty standard though.If I were you, I'd call around and talk to a few other lenders.  

I recently moved from Miami to Orlando to work as a Business Development Manager for Innovative Realty and I quickly discovered the Orlando market is completely different from what I'm used to in Miami.

If their credit didn't meet your standard, why did you rent to them, because of the extra money?

@Jon Schwartz1) To begin with 3 million FMV in California captures innumerable small business owners standing entirely on its own, but if that weren't bad enough, the valuation standard is actually aggregated across all properties owned so it's not in fact in excess of 3 million per property making it much worse still.2) Commercial properties have a very suspiciously expansive scope in the initiative (the devil is in the details, as is typical, and here as well) thus capturing both mom and pop businesses and in many cases even agriculture.3) Unsurprisingly those proffering the provision have acknowledged it is but a first step, once they get their foot in the door with passage of the initiative they will shoot for full repeal of Prop 13 targeting all real estate owners.4) But you make a really great point, sell it as tax on fat cats (while in reality it's scope will hit many many small businesses) makes it palatable to a largely uninformed electorate and further softens them up for delivery of the really big hammer when they shoot for full repeal of Prop 13.

Are there any Texas specific laws we should be aware of besides tht standard non-descrimination laws?

I fully intended to rent it out by the room, but while reading some HOA documentation I discovered it very clearly states:"Leasing: Any dwelling that is leasedshall be leased only in its entirety; separaterooms, floors, or other areas within a dwellingmay not b~ separately leased;"Short term rentals are not allowed, either. 

If they're not looking to sell the note on the secondary market, but rather hold it internally, they will have a lot more autonomy than a standard mortgage broker or a big bank. 

@Geo CruzBased off information given, if you pay anywhere close to market value there is zero percent chance that property will cashflow as a standard rental.