However, the lease that was presented to the tenant and is now signed is for 12 months.This is a big deal to us - both for the cost issues (~$250/month in lost rent for 6 months, coming vacant at a bad time, etc.) and trust issues (I don't want a PM that can't create a contract at my instruction, they did a poor job getting it rented, etc.).

I instruct my clients to meet with the appropriate experts to get their questions answered before making a purchasing decision etc.Each person overall goals and structure is different which is why general advice on these topics will not have the same guidance and direction as sitting down and planning with the expert in their field.When I do deals for clients they have their own CPA or tax attorney, legal and asset protection attorney, 1031 company or I have someone, engineer for site inspection,phase one, cost reserve stable etc.There are 2 main components being the tax structure and asset protection structure.

I tend to write down the ideas or instructions I find important all in one place, helps me remember it, and I just reference my notebook when I need a refresher.

I think you want to be careful to check into some of the more hidden high item costs like electrical issues, incoming and outgoing plumbing...

The LOC for each property is for that specific property so it's not like you've hidden a loan from them in order to finance another one.

I think there's a blog with instructions about doing that recently and I'm pretty sure I bookmarked it.

Some info about the deal:Background5 Unit MFH in a suburban areaGoal is to occupy one of the 5 Units as a 1st time home buyer.Property overall in good condition, no liens, no hidden surprisesNumbersListed price 300KGood condition, 5K repairsAverage rent: 800 per studioInsurance: $2200Tax: $4000CashflowThe following numbers were done using Residential financing 20% down at 4.5% interest on 30:Monthly cashflow as owner occupying and non property mgmt: $300Monthly cashflow as pure investment with 10% property mgmt: $1200Latest UpdateGood side: House is almost under contract.Bad side: All of my 3 residential conventional lenders backed out at the last moment after learning this was a 5 unit property.In summary, we have a great deal, but no financing.Any recommendation on how to approach commercial lenders on this case?

If those weren't in the equation, I understand the purchase and sale agreement (with protecting myself so they are liable for any hidden debts tied to the house).

@Christian Garcia From my experience, the number one red flag with Private and/or Hard Money Lenders is junk fees and large pre-payment penalties hidden in the fine writing.

True true - there are deals out there you just look for the hidden ones that you have dig deeper to find.