Not necessarily a scam, maybe someone trying to save fees. 

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

What are their nightly rates, occupancy and amenities?

Bureau of Labor Statistics and Texas Workforce Commission, Texas was reported to have the highest rate of job creation through 2024. 

it makes for a very juicy internal rate of return.

So you are better off finding someone who wants to rean interest on their money and getting a promissory note signed and giving them a 10% interest rate and having them give you a 15k loan interés only for a 12-24 month period.

For the 10 year period spanning December 2014-2024, single-family prices in Austin nearly doubled, yielding an annualized appreciation rate of ~9.4% in that period.

Give me a shout if you'd like a rate quote for your DSCR loan.

I financed the deal with a conventional loan and bought down the rate from 7.75 to 6.25.

In the end, it cancels out any benefit.Loss of Key Homeowner BenefitsIf you sell your home to an LLC or S-Corp, you’ll lose:$250k/$500k capital gains exclusion on selling a primary residence.Homestead exemption on property taxes.Owner-occupied insurance rates, which are cheaper than rental insurance.Substance Over FormIn tax law, the IRS looks at the substance of a transaction, not just the form.