@Joe Carpyou can buy rentals with a DSCR loan, and they will not require W2 income like a conventional bankhowever, down payments will be 15-30%, so will use up your cash fasthow to scale as we sink money into each property is definitely a major challengei have done a couple successful BRRRRs that helped preserve capitalhope this helps

To preserve capital, can I make slightly higher offers on properties and have the seller pay toward these fees? 

However, the challenge to me is to capture her 3.75% existing mortgage at the same time preserving our cash.

The biggest difference with DSCRs is usually 1) prepayment penalties 2) more points 3) an affidavit that you cannot occupy the property 4) covenants and agreements regarding the requirements and rights of the lender to protect/preserve the collateral that may be more aggressive than Conventional.

From an asset preservation point of view he stops making payments immediately.

And appreciation of property is in large part capital preservation, it is your investment capital being inflation adjusted. 

A company called Asset Preservations bought the Right of Redemption from the foreclosure owner and is now trying to redeem it from us and refused to pay more than 100k during mediation and we have a trial set for July 29th. 

While a 3.5% return seems low, the buyer profile for this asset was individuals in wealth preservation mode.

Our approach for implementation is to break all repairs into 4 categories by priority:1) Health & Safety - most important as could result in tenant lawsuit2) Property Preservation & Government Requirements - don't ignore a roof leak that costs hundreds to fix now, but will costs thousands in the future.

I'm an experienced investor, agent, and a project manager for an established general contractor, focused mostly on historic preservation, custom homes, and investment properties (flips and holds).