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

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. 

Any recommendations on areas to avoid or be careful given high crime rates around Downtown and East Cleveland?

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.

Recapture typically happens only when you sell the property.If you use the property partly for personal use and partly as a rental in a given year, depreciation and other expenses must be prorated based on the number of days it was rented versus personal useBased on the current tax laws and regulations, once you've taken bonus depreciation on an asset, you cannot "capture" additional bonus depreciation on that same asset in future years, even if the rates increase.In the 2024 tax year, the rate for bonus depreciation is 60%.

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

Yes their rates are steep, but that's hard $$$ for you.

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.

You also implied that we don't specifically price deals for our clients and the client's "rates and fees will be much higher".