This would allow me to save money compared to paying cash or the huge Down-payment DSCR loans require.

As @Carl Millsap said it depends on how much more in rent you're getting compared to the costs of renovating.

Cost of Living and Affordability: Texas has been known for its affordability—how does it compare to other emerging states like Tennessee, Florida, or North Carolina?

Private financing has many perks compared to traditional bank loans, especially if you're after speed and flexibility.

Basically when you compare Cleveland to Riverside, California most every Cleveland deal will look amazing to you on paper.

Quote from @Dany Namou: Does anyone have Any insight into how fund 3 is doing compared to the other two?  

Also, compared to a traditional loan (i.e., conventional, FHA, etc.) for a primary residence your rate/points options are going to be higher for an investment.

If this is not something you're interested in delving into and learning to a high degree, then investing in publicly traded REITs would be another good option for you, which have historically returned about 13.5 per cent Per year over the past 50 years (1977-present), beating the US stock market by two per cent and even beating private real estate investing by 4 per cent (that's compared with the average real estate investor, not the experts here at Bigger Pockets).

You have to compare your expenses with each management style and find the option that works best for you.

You will need to compare your unit to the competition.