It’s quite appealing as a long term investment - even at today’s rates.

Due to current interest rates, many CAP rates are much lower than they should be and usually there is only so much price discount a non-delinquent seller will be able or willing to offer.

The combination of Germany's stable economy, well-regulated property market, relatively low interest rates, and the opportunity for long-term capital appreciation make it a compelling choice for U.S.

I understand they have a little bit higher interest rate, but what are the risks of DSCR loans?

Your interest rates are low. 8.5% is around the "market rate" for owner finance buyers right now...30-yr, fully-amortizing2.

For all methods you would want to find a market that has strong employment rates, strong income rates for the market, and is a growing or an established market. 

Or at least what are investors looking for today as far as return and cap rates?

The lower rate or longer term can also make the payment more affordable. 

If it was due to a natural disaster they cannot raise your rates.

Here’s the situation:Purchase Price: $540,000Down Payment: 20%Mortgage Rate: 7.125% (30-year fixed)Monthly Expenses (Mortgage, HOA, Taxes, Insurance): $3,706Realistic Max Rent: $3,000As you can see, I’m currently short $706/month even with max rent.