It's amazing that there is so much misinformation floating around.

That's enough cash to float the mortgage for 4 years without ever collecting a dime in rent.Yes, there is a growing trend that sub2 is a way to get into real estate with no money. 

Just kinda surprised I don't see this floating around a lot more.

You also benefit from the float, meaning that you get paid say $10,000.00 at the beginning of the month, but you don't pay all your bills right at the beginning, maybe some at the middle, others towards the end of the month.

Many Multi-family properties now in debt service trouble as the GPs took out very risky 2-3 yr floating rate or adjustable loans so they could cash flow after buying very expensive 3Cap apartments, which loans have gone from 1.5% to 5% or higher, and knowing that obvious and predictable risk since every primate could see mega-inflation coming in early 2021 due to more money printed in 2 yrs than first 200 yrs of country, They "smartly" took out Rate Cap insurance, (cost 50k for a 12 month policy on 10mil loan to cap variable insurance rise about 1-1.5% above the origination level) but now that US 10yr up 10x from 0.31 in 3/2020 to 4.2%, that same insurance policy is 1.5-2.0 million not 50K, so They can't cover the much higher debt service nor buy new cap insurance without shutting down distributions or capital calls.

So that is written as a DTI of 1.2.Here is an explainer from a lender:https://www.rocketmortgage.com/learn/debt-to-income-ratioSo if your goals clash with your DTI, you may have to lower your debts before a lender will lend you more money.You mention 1 mortgage, but then you mention having cash from a cash-out refi on another property - which sounds like another mortgage floating around.  

I backpacked in Nicaragua in the Fall of 2014 (it was amazing, needless to say) and I noticed that there were a lot of 'for sale' signs and banners in front of gorgeous single family houses and villas near the beach around Juan del Sur, where I was mostly staying.

Fixed means there is a balloon payment, hybrid means it floats after the fixed rate ends.If you tell me which loan and what LTV and DSCR will be I can post a specific chart

If you do pull the trigger, I would float the rate until closing and keep a pulse on the 10yr note.

Many reasons here, but the most common is they went into deal with short term floating rate debt at a market peak.