Does a DSCR loan require 20-25% down payment?

Best practice is to keep one or two payments in reserve from the buyers down payment for such instances.

@Isaac Hanai make sure you FULLY understand the negatives of S8 programs, not just the mirage of consistent government rent payments.

@Jordyn Ohsnot enough info to helpbut if you're using a HELOC for the down payment AND getting a loan, then you're probably negative cash flow given that's 100% leveragei would never do that unless i were going to refinance in the short term

Rentals also build equity through tenant payments and appreciation, with profits taxed at lower long-term capital gains rates when sold.

They have decent rental markets, and there are options where you could get in with a 20% down payment.

If you offer more $ for the property than the all cash offers AND you appear to the seller to be highly qualified in the method you are using for sourcing the payment, at some point your offer will be more appealing than the all cash offers.I don't understand why you would consider a 1031 for another property in two years. 

If it doesn't, can you still make the payments?  

The appraisal district shortly thereafter corrected the tax allotment “anomaly” between the two lots, but the investor never made a tax payment and eventually lost the lot to a tax foreclosure.  

It might be payment notices are going to a different address and it is simply overlooked.