Mean while i would be building equity, and if rates do lower, or when the term ends, could refi for better rates and then maybe cash flow.My questions are:Is this too naively optimistic?

This was my first deal, and house hacking made the most sense because it lowered the threshold for risk in my mind.

We do know the border had its issues, but currently illegal crossing are lower compared to when Trump left in office.

You could bring less down and possibly have a lower interest rate since you will be living there.

The price points do make it hard to cash flow even with the lower interest rate subject tos. 

If your rental rate is below the market anyway, a Tenant might consider this to be win as they would get the lower rate in the beginning and just rise to the level they were looking at everywhere else.Step clauses can be written right into the lease, or created by using 3 month lease terms with an auto-renewal at the step up rental rate price. 

If renters find out your utility costs are high, they will expect a lower rent to balance it out.

In my experience, the local banks are going to get you better rates and lower fees with their commercial loan products than the "DSCR lenders".

Some PMC's will charge a lower percentage fee, but will charge it whether tenant paying or not.

If the loan amount you are looking for is small relative to the value of the first and the second property combined, they are very well secured on a LTV%; ask for a 1% point lower rate.If you don't want to Cross Collateralize, do you have any CD's or MM you can transfer to this bank as collateral.