Financing questions and suggestions on S. Jersey duplex

[Bill MacFarland]

Im settling on my primary PA home shortly and Im a licensed agent in PA and NJ. I am considering a duplex in S. Jersey that has value-add opportunity investment, however Im not approved for a conventional financing due to DTI issues. My credit score it good (over 700) and I can afford the purchase. I will have a decent amount of cash from my sale for down money, closing and payments and reno. I may live in 1 half and rent the other. Or rent both sides at some point and just use in the off season. Depends on some factors. My questions are as follows:

1) What options are available to purchase and what are some suggestions? It could be considered my primary home as a purchase for a better rate, however I will view it as an investment and 2nd home at some point. Partner? Private investor? Hard money loan? Its an estate sale so seller holding the mortgage likely isn't an option. Don't use any of my money to purchase only towards reno? Options? Suggestions?

2) I will do the reno myself at my out of pocket expense. So down the road 6-12 mos. or maybe a 1-2 years? if I refi to cash out my partner or obtain new financing/lower rate, better terms, BRRRR. What do I need to keep in mind as far as rental and qualifications down the road what type of financing may I qualify at that point or should consider in my planing? I assume I likely wouldn't be approved for conventional financing at that point either or maybe Im wrong?? Would I need to exceed a certain amount in cash flow from rent to exceed my expenses? I don't want to be stuck in a bad situation at that point. What should be my goal? Any suggestions on a path to take for financing at that point?

[Robin Simon]

Quote from @Bill MacFarland:

I appreciate the reply. So to understand correctly your suggesting et a hard money loan to cover the purchase and rehab costs with no-out of-pocket? How much higher typically is the rate on a DSCR loan than a typical conventional fixed? The rents would need to cover the loan & expenses I would imagine to be approved for a refi on a DSCR?

 It depends on some factors, but generally its not as much more than you think - something in the neighborhood of 50-100 basis points higher