But with all the syndicators out there NOT all but many also getting stuck with their deals needing to recapitalize because interest rate rise and tax's and insurance rise was not planned for or contemplated these are legitimate actions to take to protect the greater good. 

Your interest rates are low. 8.5% is around the "market rate" for owner finance buyers right now...30-yr, fully-amortizing2.

I understand they have a little bit higher interest rate, but what are the risks of DSCR loans?

They are short term loans, usually 6-12 months, high rate, interest only payments. 

You should be able to get up to 80% LTV on a rate term refinance.

Keep in mind a HELOC rate will be much higher because of the CLTV and risk.

However, Austin proper has a high barrier to entry due to the sharp rise in property values in recent years.

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

My question would be is a 6 cap the going rate in the area for that building.

Understanding the interest rate, loan maturity date, and any prepayment penalties will help gauge urgency.3.