Glad to see you are taking the time to run numbers first!

I own 1 rental outright, I paid 70k rents for 1000 monthy. I am in the process of refinancing for 100k to purchase a second property. I am using a dscr loan. what I cant understand, is why are my closing costs so high...

You could put in a range of numbers for purchase price and closing costs, renovation expenses, and expected returns and you could very quickly get a range of projected return on investments (although an excel spreadsheet could easily do this as well), but I'm sure as technology develops we will see even more sophistication in AI's ability to assist in deal analyzing.

So a majority of the ownership groups would want to sell, plus since they are more sophisticated owners usually would sell through a broker to get max price and not sell privately.  

Similar for bathrooms if virtually all are multi bathroom but you find a single bathroom, making it multi bathroom via new construction could be a value add.There are more sophisticated value adds such as add multiple adus via bonus density program.  

Now a-lot of times you buy a home from someone with seller financing and they hold the note for 6 months to season it and then sell the note to another investor or a firm and then it will most likely show up on your credit because these are more sophisticated investors.In regards to the benefits of owner financing you won't have to pay closing costs to a bank.

While sophistication of your equity partners (private money lenders) will vary between residential and commercial, the principle of raising private capital is the same.You need to develop your own system which allows a constant stream of PML even when you don't need the funds and/or don't have an active deal under contract.For example; I raise private capital by offering free educational workshops for people with self-directed IRAs.

Many will also require a third party due diligence report from a company like Mick Law or factright (which they run around $30-$50k). 

That will change as the hope for lower rates diminishes, lenders get more assertive on maturities, and sponsors run out of time and money. 

We look at lenders (so long as they lend in the asset class you are considering) as an additional line of due diligence (they deeply care about their money and they are likely more sophisticated than you are).