You get the best of both worlds in that way: No seasoning to pull cash out AND the conventional rate/costs and no pre-payment penalty which are all better then DSCR loans.  

My advice is get a real estate agent who is also an investor, make sure to walk the properties yourself (if that means flying into town that couple of days and flight cost may save you tens of thousands, the number of out of state investors I have met who are up **** creek without a paddle are numerous)  and run your numbers forward backward side to side for every strategy. do you have a back up plan to your back up plan? 

It ultimately comes down to your willingness to take on risk and the trade-off between investment costs and the potential savings if a lawsuit arises and your insurance policy doesn’t cover the claim (e.g., discrimination, harassment, dog bites, toxic mold, etc.).When it comes to structuring your investments, there is no one-size-fits-all solution.

What add cost should they expect?

The reality of the market is often misunderstood, and you’ve perfectly highlighted the impact of interest rates on home prices.It’s a compelling point—waiting for lower rates can actually lead to higher overall costs due to increased demand and rising home prices.

This post just cost me on my count.  

If you ever want to get into a tenant nightmare of costly potential litigation become a landlord, have the ac go out in Phoenix in July, and inform the tenant that you just don’t have the funds to replace it!.    

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

The low down payment house hack is the way to go.

Quote from @Hanna Brown: @Jay Hinrichs If the bidder at the auction pays cash for keys to get the homeowner out, does the person redeeming from the owner position (exercising rights of redemption w/in 180 days) have to reimburse them for those costs they paid to get the homeowner out?