Something to keep in mind though is that with the DSCR it is a new mortgage which entails higher closing costs as well as paying off any existing liens.

If they say put up higher railings, additional smoke detectors, etc, complete it promptly and document it.I've been in the landlord business for 20 years, and I've always kept my properties to code and well maintained. 

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

inheriting tenants is higher risk.

So initially there was at lease 15% equity and on some the appraisals came back higher so there is even more equity. 

I purchased it with a HELOC so higher interest debt until I can cash out refi.

Thanks Are you saying your DSCR quotes are 2-3% higher in rate or are you talking points up front? 

If paid by the lender (this is common for conventional financing, especially with retail lenders), the origination and/or underwriting fee is “baked” into the interest rate, therefore giving you a higher rate in exchange for lower out of pocket costs. 

is that it typically comes with higher rates on the first mortgage, if you're low income enough you might qualify for near free DPA but most DPA's open to all income brackets are typically at higher than market interest rates.

With the high housing market in the past few years, house-hacking and living "rent free" is very tough almost everywhere in the country, especially if you are planning on putting <20% down (higher mortgage payments + PMI).