I'm also having fits with traditional banks because the loan would be considered commercial.

The west coast markets have traditionally been appreciation markets, and if you are not forced to sell and can hold long term, risk diminishes.

Traditional loans through Fannie/Freddie/Jumbo lenders won't allow multiple ADU's on a property. 

The odds are against us since the seller could easily list their property via traditional means in 2yrs when they retire.

Hi Eric - As you can see from the comments, it is up to individual discretion to call DSCRs "no doc" loans or not.Investors are drawn to DSCR loans due to their simplified documentation process, which offers less paperwork and hassle compared to traditional lending options like conventional and bank loans. 

A traditional flip simply requires more cash than you have.

In my experience, traditional banks tend to have pathetic mortgage lending competence because they haven't invested or cared about this vertical in over a decade. 

Traditional financing currently in my 3rd year into the hack and looking for another.

Would it be a mistake to not take advantage of the low money down loans for a first time home buyers primary residence, and instead attempt to invest out of state in a traditional investment property?

And harder to work through those details with traditional lenders.