This reduces exit options and affects the value. 10) Small number of small units is the most expensive residential development there is.

It'll at least help you reduce your living expenses.

However, depending on the Trust Company you work with, you might have more options with respect to the diversity of public and private market investments.

If you can't get the seller to reduce down to that appraisal, consider walking away. 

A conventional loan under an LLC provides liability protection and easier rental management but requires a higher down payment (20-25%) and stricter lending terms, which can reduce cash-on-cash returns.

For example, you may reduce the maintenance and capex to 5% and then discover turnover occurs more often than you had planned.

As the great philosopher once said, "mo' money, mo' problems".I think the reduced leverage plan is a good choice to free up some DTI but obviously the extra fees on DSCR could start to add up a little.

Is it to build up assets, is it to make additional income, is it to reduce your monthly housing spend and save more money, is it tax breaks/benefits? 

The seller was aware of work needed and priced it accordingly but was willing to reduce the price point for an all cash deal.

You don’t have to leverage it up all the way to reduce cash flow.