I used a conventional loan and put down 5%.

I will suggest a conventional loan or an fha both to be owner-occupied - I will stay away from DRSC and commercial loans at this time due to the high rates.

Its why I sold all my rentals I bought with conventional financing back in 2004 2005 2006.. having so many loans my fico could hardly get above 700 even though I had never missed a payment in my life and I paid all my CC monthly and have for 25 years and NO other debt than car loan.. 

There are areas in philly with an insane amount of inventory which can make it difficult to fill a vacancy. 

If I’m going to use a combination of hard money and conventional (maybe FHA) loans, I will need a LLC for hard money eligibility anyways.

As a DSCR lender, I have originated ~200 DSCR loans so far so my answer will hopefully be helpful.In my opinion, the pros of DSCR loans far outweigh the cons, which is why DSCR loans are now the go-to form of financing for rental property investors.Pro Number 1: Streamlined UnderwritingDSCR loans have a shorter and less demanding processing checklist than bank loans and conventional loans.

East Tennessee home sales increased 8.9% from the previous month, but were down 1.4% from a year ago.The median sale price was $354,000 — up 10.3% from the previous year.Total housing inventory increased from the previous year – up 24.0% from a year ago.Half of the homes sold were under contract in 28 days or less, up from 25 days a year ago.45% of homes sold for the asking price or above, with 21% selling for more than the asking price. 8% sold for at least $10,000 over asking and 2.6% sold for at least $25,000 over asking.The sale-to-list price ratio increased to 97.8% – up from 97.6% last month.New construction represented 16.5% of total home sales.If you want to dive deeper into some numbers in the Knoxville and surrounding area I'm always happy to nerd out. 

Reach out to me if you have inventories. 

Nearly all of your normal expenses on a property can be deducted from your TAXABLE income but added BACK to your qualifying income for a conventional loan!

It's not just about agreeing on the numbers, you also have to figure out things like: - Financing terms (what rate, duration, amortization schedule)- Balloon payments (sellers typically will require 5yr balloon payment, expectation is you would refinance into conventional financing before then)- Renewal options on above (sometimes sellers can provide another 5 year option to keep seller financing amortization schedule, they can charge a premium for this etc.) - And much more.