Traditional loans through Fannie/Freddie/Jumbo lenders won't allow multiple ADU's on a property. 

Creative solution to the tic/coop financing and you have a value add that you can leverage to riches beyond your stated goals.  

The odds are against us since the seller could easily list their property via traditional means in 2yrs when they retire.

Hi Eric - As you can see from the comments, it is up to individual discretion to call DSCRs "no doc" loans or not.Investors are drawn to DSCR loans due to their simplified documentation process, which offers less paperwork and hassle compared to traditional lending options like conventional and bank loans. 

A wise investor will not try to get rich quick with shortcuts.

In my experience, traditional banks tend to have pathetic mortgage lending competence because they haven't invested or cared about this vertical in over a decade. 

Traditional financing currently in my 3rd year into the hack and looking for another.

I was in it until I read Rich Dad Poor Dad. 

Would it be a mistake to not take advantage of the low money down loans for a first time home buyers primary residence, and instead attempt to invest out of state in a traditional investment property?

The rich get richer, and like George Carlen said--it's a great big club...But given that....don't see the glass as half empty, instead see it as half full.If you want to be a big fish (accredited investor) RISK your investment money in things you think will get you to that goal.