But I also know the market here is very competitive, and the medium home value is very high.

However, I do not plan on investing in this area due to hurdles of entry such as expensive product and high competition.

I would recommend networking with both your community and even your local competition. 

I felt these rates were highly competitive for a DSCR loan and have been happy with the quick responses from my representative/loan specialist.

Also - presuming you paid more for the property than was owed on the mortgage due to competition on the auction (several presumptions there) - the previous owners are entitled to those excess funds from the court - which gives them a resource to be able to afford our rental rates. 

Our rates are very competitive at this time.

However, more often than not the terms are not competitive or reasonable for the borrower.

As others have stated there is competition and insurance issues.

The rate and terms were highly competitive and the rate was about 1% lower than I had heard, it was at 7.625% about 1.5 months ago.

. - Also, spend some time before/after to drive by comparable properties in the neighborhood to understand your competition and the rents they are asking.