The formula for calculating DSCR is straightforward:DSCR=NetOperatingIncome(NOI)/TotalDebtServiceNet Operating Income (NOI) represents the property's income after operating expenses.Total Debt Service includes all debt obligations, such as loan payments, property taxes, and insurance.A DSCR ratio above 1 indicates that the property's income is sufficient to cover its debt obligations, while a ratio below 1 suggests insufficient cash flow to cover debt payments.Lenders usually have specific DSCR requirements, with higher ratios indicating lower risk for the lender.

Also down payment required may be higher based off experience.

You will need to disburse funds annually to each property LLC - but if they are all single-member LLCs this may not be required and only the PM LLC will need a bank account, etc.This is not legal or tax advice, so be sure to check with tax attorney and/or tax professional.

Develop the plan, know how much $ is required to execute, and then start sharing the plan with those who may be interested in investing with you.  

They were desperate to sell the property since there was only 3 homes left.

Most lenders will require that you occupy a minimum 51% of the building in order for it to classify as owner occupied. 

While the mix of business and friendship requires clear expectations and contracts, it offers a unique chance for collaboration with someone trustworthy.

I have already reached out to My Real Estate attorney and he is going to be drafting the required paperwork to secure the loan against the property.

This would require hiring an attorney and create some long-term obligations, but may solve a number of your problems.  

This is how most hard money works now Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV) 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.