These properties today can throw cash like crazy, but you'll be dealing with a certain kind of tenant and depending on your tenant screening could be looking at higher costs due to poorer tenants.

Quote from @JD Martin: Quote from @Jay Hinrichs: Quote from @Matthew Drouin: Small wine town is all I needed to hear.Seasonal tourism is usually not a great industry in which to build a sustainable business.There are probably higher and better uses of your capital near high velocity metro areas.We have small wine towns near our city in the finger lakes region of western NY.  

Why would the government waste our tax dollars paying higher rents than the market?

Because the expenses and vacancies are going to be a lot higher.

look man, my area is higher than miami but I can convert a house to DSCR 2.x after I build 2 bathrooms.

I did check it out and got the higher rents like the analyst tool said. 

I know the cost associated with a DSCR is much higher than with a Conventional loan but the commercial zoning may be problematic for Conventional.

You could get a DSCR loan for 20% down non-owner occupied, but the rate will be higher.

Wondering if the vacancy rate is higher in the area as it seems more advantageous to just buy a house and pay mortgages rather than renting.

I am paying the tax in both places and Canada tax rate is higher.