There is also a 5 year prepayment penalty fee.  

Like a 12 month loan with no pre-payment penalty, with monthly interest only payments with a balloon payment due at maturity?

If they are unhappy with the rental, they are free to leave with two weeks notice, pay rent through those two weeks, and they'll receive a full refund of the deposit after they are out without penalty as long as it's broom swept with no damages.

Also be cautious of the DSCR loans in this scenario since many have a 5-year step down prepayment penalty.

We included a 5% of principal pre-payment penalty clause. 

You can have title hold some funds back on escrow, and a daily penalty for each day past the move out date the sellers are still there. 

No Pre-Payment Penalties and no Mortgage Insurance on either of these loan types, even if you are over 80LTV.  

If you want tenants to honor their leases, or pay a penalty, then why shouldn't Property Management Companies expect owners to honor their property management contracts or pay a penalty?

Some have a pre-payment penalty (paying off the principle early will require the remaining interest balance to be paid to discharge the loan.)You may find out after talking to 25 lenders that one of the possible plans you had may not be an option and instead you have to pivot to plan b.My recommendation would be to get crystal clear with what your goal is.Before coming up with your team - decided what you want/can do and reverse-engineer the solution by knowing where you want to get.

Neither the seller providing financing nor the private lender will have a pre-payment penalty which also incentivizes us to get the refinance done quickly.