I understand they have a little bit higher interest rate, but what are the risks of DSCR loans?

Your interest rates are low. 8.5% is around the "market rate" for owner finance buyers right now...30-yr, fully-amortizing2.

It's important to know what market rents are for what you are analyzing, many properties are super under rented and you have to get them to market rates. 

It is going to be near impossible to cash flow on a property with 100% financing, especially if that partners rates are above conventional rates.

Here’s the situation:Purchase Price: $540,000Down Payment: 20%Mortgage Rate: 7.125% (30-year fixed)Monthly Expenses (Mortgage, HOA, Taxes, Insurance): $3,706Realistic Max Rent: $3,000As you can see, I’m currently short $706/month even with max rent.

If you aren’t saving the money up to buy another property chances are nothing will pay a higher rate than paying it towards your mortgage.

In this case, you can use Rental Income from the units that you will not be living in and that income can count to help you qualify.FHA rates are going to be lower than conventional for you almost always, but FHA does have a 1.75% funding fee. 

The drop and Swap is about all we use here due to the confiscatory tax rates based on sale price.

I have other assets in Canada but I looking at bringing everything here when the exchange rate is better.

However, some amenities consistently deliver high value because they attract more bookings, increase nightly rates, or result in better guest reviews.