He informed me that he can't because he's not supposed to for insurance purposes. 

I would be looking at about 50 K loan and can go  upto 12 % interestTo be clear this is only for future ..most probably next year when I start to scale 

And then payoff the home equity loan about less than $60,000 within 2-3 years.Thx.

Market rents from the appraisal and/or the actual rents need to cover the mortgage payment, property insurance, taxes and HOA (if applicable).4.

Can I use a DSCR loan for these homes?

If I remember correctly, there is an insurance company insuring against the risk of having the corporate veil pierced.

We would be looking to use a conventional loan.

You can use a DCSR loan alternatively, or as I love to do; buy homes using seller financing.

Here is what is being considered:SCENARIO 1):1) Parents loan us money at X% rate.2) Loan terms would allow for early payment without penalty (we would get a conventional loan in 2-5 years to pay parents back). 

Anybody on the LLC or the operating agreement can qualify For the loan.