Where I live, we still have a severe shortage of homes--median time on market is still 7 days and it would likely be shorter if not for delayed negations being the norm. 

Was it for a place to live for work before they found a permanent location or was it used for someone wanting to stay in the area as a 2nd home for the winter months?

That's where I live.

He would need to find a place to live,which would take money off the table for collateral in his next deal.

Unless you want to live in that district, I would avoid any and all purchases in an area like that.

Foreign citizen currently living in Miami.Any recommendations in general?

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Preferably out of state near Charlotte NC where our daughter lives.  

Here's a secret - evictions are expensive everywhere, and tenants win almost all disputes regardless of the state.

Buy a house using your parents' money, then manage it for them while living there.