It can be more capital intensive up front and take a little more time than a traditional BRRRR but it gets you started.  

The talk seems to be more as if these people invested in Bank Bonds, CD's or something.

I realize there are not many banks that offer this.

There are some services like Guest Ranger but we do not screen in the traditional sense.Make your house rules clear and make it clear they are enforced, then they tend to screen themselves. 

And you basically bank 21 nights then get to use 21 nights from someone else.

Why are you looking at PML vs traditional financing for this type of deal? 

Although we do have deals on the lending side that dont work but we are not forced into a position to take big loss's like we were when the banks were calling our loans.. this will happen in the DSCR world as all these folks are using same type of debt IE debt that can be called based on the terms of the debt or like you have seen with the syndicators that are talked about on BP max leverage bad debt things dont go right And you have cap calls or projects totally lost. 

Contrary to what companies may tell you that charge you $ to get "bank funding".

Personally, I love them because they offer built-in diversification.In my experience, local banks are your best bet for financing mixed-use properties.

I will answer as it relates to traditional BRRRR, in the general case there are additional options.  1) Do not perform maximum cash extract.