Lately, we’ve found a couple large national HML’s that have good terms, very deep pockets but won’t allow 2nd position loans.  

-If not, then I wouldn't add $100k of 'Value' to the property just for having an established Pizzeria, since as a simple landlord, it all breaks down into the return calculations above (hinging on rent/mo from your tenants, whoever they are) which at your current estimates would leave you under-returning compared to a money-market account earning 5%.Now keep in mind, I have been discussing the long-term hold return of this investment.

@Johnny Braddock   Typically renting a room while you live there isn't going to violate this as someone would have to have an issue with it and report it but I am not a lawyer.

I typically buy/sell in urban areas where there's a sewer system and public water, so I need resources/referrals for this situation. 

I have 2 LT rentals, one short term rental & my personal property-has a good bit of equity. (4 properties total) 800+ credit score & good income.I’m looking to get in the commercial space but I’m tired of putting down 20% cash every time I find an opportunity.

Eviction courts are open, fair, and typically available within two weeks of filing.

If the sales price is $850k you will need significant down payment to carry the DSCR loan on $5300 current rents...check in with @Joseph Chiofalo  as DSCR loans 5+ units are typically a bit more difficult to place as well. 

I find that it's very rare that a lender will actually close at this amount of leverage because they would typically be putting up a much larger amount of funds than the property would be worth at the time.Has anybody actually worked with a lender that did fund based off of the LTARV?

Short term rental with cost seg study/ accelerated depreciation to offset W2 income.

@Yu Xiao, using that property as a short term rental during the time you own it will open up some additional tax saving potential as will doing a cost segregation study to take advantage of some accelerated depreciation.