I agree to not spend on points now if you can avoid it, you will probably be refinancing to lower rate anyways in 18-24 months. 

The good news is that purchase and rehab loan size minimums are lower than DSCR minimums.DSCR is about long-term financing, not short-term purchase and rehab financing.

I would focus on getting that househack first.You can take advantage of a lower downpayment, get a roof over your head, and an investment property all in one.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Because I wanted to lower my financial risk. 

If they prove to be loyal I will give them a lower percentage for being loyal, but not accepting an "I will work with you forever" deal with no proof of concept or relationship.

Should I go in for lower yearly premium vs lower deductible? 

  $695 is fairly typical in Nebraska with there being some a little lower and some quite a bit higher.

With our investing in lower-priced properties, we're far from being immune to these tax hits but can better absorb them with higher cash flow than most site-built single family homes.