Also, the transfer of title would insure costs, and you would need to make sure the due-on-sales clause would not be an issue.If you decide to proceed with the business purpose financing, lenders will generally require credits from all three of you given the shares of the LLC is 1/3 of the company each.

No requirements to purchase.Not understanding your math - generating only $1900 renting out by room, but $2800 for whole house?

Attorneys ensure proper disclosures are given and state requirements are met.  

@Andrew Postell, I pulled it off the GRM site, which may not have updated ratios: "DSCR loans require borrowers to meet a minimum DSCR threshold, typically around 1.25...." https://www.rate.com/resources/what-are-non-qm-loansI spoke with a loan officer who said it may be lower now to reflect the market, so you may be right, but I am awaiting the approval and don't have the final ratio. 

As a real estate agent, have you met the requirements for real estate professional status?

I could fill you in, but Bigger Pockets requires you "connect" by clicking on my name in order to do that. 

From what we've read, FHA loans are great for people like us who have limited credit histories and the low money down requirements are awesome.

However, financial freedom is not simply replacing your current income; it requires maintaining your current lifestyle for life.

There's low barrier to entry in terms of effort required to purchase stock and naturally more people are going to do it. 

So, if you are wanting a hard money loan on a new property you are purchasing...then no HML would require a separate HELOC to be paid off.