I chose Phoenix because it's close the areas I normally post up and has strong fundamentals, and I have built up come community here over the years.

Normally I would say absolutely, looking at the above chart.

DSCR loans carry Prepayment Penalties, so unless you are comfortable staying in a 9%+ rate for 5 years, I would suggest just going with a normal 20% down DSCR. 

Normally it makes sense to leverage the banks $. 

They divide the investment strategies into three categories: normal, aggressive, passive.- These categories are based on cash on cash ROI.

. --- My current projected invested amount is ~100k for the year where the Passive income received is ~15k which gives me a Cash on Cash of 15% This is my first year and I've been told this is higher than normal CoC.

Doing this (renting both entire house and single bedroom rental) allows us to be able to tap into 2 separate target audiences and accomodate those singer travelers, couples coming to the area that would normally scroll past our listing due to size/cost. 

I normally list them with a tenant inside and if I cant get what I want after 2 weeks Ill drop the rent a little to get someone in.

Under a normal repayment scenario, Scenario 2, the loan would still be at about $79K.

In a waterfall, the GP is incentivized to stay the course, gambling the LPs equity, because the GP only makes money above 7%.