it typically takes 5-10-15 years to stabilize a property, get a good tenant in, and actually generate net cash flow, especially with prices and interest rates so high.if you're in it for the long term, and willing to weather some early storms, great. 

Quote from @Hector Espinosa: Hi,I'm negotiating a seller financing deal which may be my first one and would like to ask for some advise about and what are advantages and disadvantages about seller financing deals.These are the seller financing terms:House Price: $330,000.00 USD​ (Sellers still owe ~$301,000 USD)Down Payment: 5% = $16,500 USD​Loan Amount: $313, 500​ (Monthly payments will be amortized as a 30 years loan​)Interest Rate: 4.531%Balloon Loan Term: 5 YearsMonthly Payment (P&I): $1,594.24​Closing Costs:  ~$3300 ​Zip Code: 74105Observations:       * HVAC requires an update but pending to inspection (replacing with a new one will cost ~$10,000 - $15,000 USD )     * Expected Rent Income: $2,000- $2,300 but this is has been really complicated to get a good estimate because is all over the place in the different sites I have checked

The investors in the secondary market have a very good grip on the prepayment risk associated with a drop in mortgage rates and use pricing or yield to offset this, which is why you so often hear of borrowers paying points and lender fees.

I have heard that interest rates for a DSCR loan are generally 1-2% higher than conventional loans depending on the LTV ratio and credit score.

Everything I've read shows PA peaked in 2022 and has dropped 5-6% since then. 

Say, 3 month later, I decide to do a cash out refinance of the replacement property at 75% LTV because the rate is lower.

Quote from @Leslie Chukwuleta: You arent wrong on the Equity drop.

If that's not the monthly income, you are arriving at your cap rate by using incorrect expense ratios/expense figures and/or the property benefits from an extremely favorable tax abatement which skews the operating costs.

Say, 3 month later, I decide to do a cash out refinance of the replacement property at 75% LTV because the rate is lower. 

But I am open to ideas.I see this environment as quite challenging to find a deal that will cash flow reasonably well in my area due to HCOL and interest rates (even as somebody with some resources).