Regarding your lender pool, are you going to residential lenders that happen to dip their toes in the water of DSCR?

But during the buyer’s due diligence, several unexpected issues surfaced, each cutting deeper into the profit I had worked years to earn.The first issue was with the water lines.

Otherwise, you will likely be copying someone else's false expectations.I have reviewed hundreds of such self-constructed logs, and most of them will not hold water.

That actually is a benefit, as no one is expected to water the yard.  

I have just started looking at properties and the first SFH we toured had just had the furnace and water heater stolen! 

Put your best foot forward.For a water front house I always lead with the water.For you it could be the arcade room. 

(And I would tell you to not buy a property that doesn't cash flow unless you have significant resources behind you that could absorb anything that could come at you - like replacing a $5,000 AC one month followed by replacing a $1,000 hot water heater the next).   

- Do you want an ocean view, or is proximity to the water or to resort amenities like fine dining or shops most important?

Think hiking, mountain biking, white water rafting and a community overall focused on all natural things and sustainability.

I don't think any water is coming into the crawlspace other than the plumbing leaks in pipes running under the house.