Priced too high, rehab estimates too low, and they don't factor in the cost of selling (commissions and closing costs). 

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Until Fed begins to cut rates I’ve found alternative lenders in some cases to be competitive with banks on construction debt when considering the totality of factors (rate, leverage, depository relationships and pre- payment penalties).

They are just like you: working jobs, parents, side hustling, wearing sandals, and driving a Prius.

A factor I am frequently discussing with clients is the nature of our current market shifts in Texas.

So, no I do not think the fed is going to go back to buying MBS to drive down rates.

Given these factors, is it worth losing some cash flow by refinancing to a conventional loan, or should I explore other options?

Your location may also play a factor in this.

To help assess each pet, we use a service called PetScreening, which rates pets based on various factors.

Good luck. haha i would run away from anyone self-proclaiming as "financial expert" with the expectation to "meet the guru / mentor/coach / master of all business" in his/her personal residence lol I have not google him yet but I bet he is taking picture in front of luxury house and driving sports car ?