Dscr will be useful in the future for fixer uppers and unique buys. 

We are buying two houses right next to each other.

That will buy you some time to get more capital together, and you know that money will be used to perform the job.

You can make more through co-living in most markets, but still likely to be better off house hacking 1 / year and then buy out of state with your extra cash.If you want to chat strategy with someone - feel free to PM me or reach out to contact info in my bio!

If you're a newer investor, unsecured private funds will most likely be your best option, however it wont work for a simple buy and hold.

The other half is a mix of spec and owners buying lots to custom-build for themselves (more of the latter than the former).

I buy and sell real estate notes.

I’ve had several deals like this on the buy side and sell side where the “gremlins” came out and started whispering against my intuitions.  

I'd save yourself from the headaches and just buy it with a DSCR loan.

This would likely take coordination with a tenant at some point - (ie - plenty of notice to them that they must vacate in order for you to sell the property)Since your current home is free and clear -  you could do a cash out refi or take out a new mortgage on the new house to be able to buy your paren't house and pay off the mortgage.