I am also an Italian citizen, I lived there for a while, so I know the place and my family lives nearby.House prices are also lower in the areas I invest in comparison to Munich where I live.

Sorry to hear that you are dealing with an eviction, though with the high cost of living here and relatively lower wages, I suspect it is not uncommon. 

Any ideas how to lower this or use it as a owner occupied property?  

Most lenders will use the middle of your three credit scores and if there's more than one applicant, the lender will go with the lower of the two credit scores.

Here’s how I’d approach it:For the 9.5% Loan: Refinancing into a DSCR loan makes sense to lock in a lower fixed rate, especially if your goal is stability and better cash flow.For the 7.25% Loan: If the local bank's investment HELOC offers a competitive rate, consider it for flexibility.

For instance, someone making $500k a year and living in a very highly appreciating market might be extremely happy on a deal that loses $200 a month but is getting 5% appreciation on a 2 million dollar property in San Diego, butut that doesn't make sense for the investor with 30k and a lower paying job.When it comes to the book series I agree with you that the order doesn't make sense (having read both).

This is what is pushing up rental demand for small MF properties that having lower rents, fees, or total move in costs compared to other larger commercial apartment complexes.

Without new companies creating similar-paying replacement jobs, workers may have to settle for lower-paying service sector positions.

DSCR right now is going to have better rates and lower cost right now.  

Lenders will finance up to 80% of the appraised value, so if the value does come in lower, that will result in a lower loan amount.