The big pro that sticks out to me in Birmingham is the tax rate. 

Although there are advantages to waiting too, such as if interest rates continue to drop.

DSCR recently came popular in the loan brokerage and private credit space with the rise of STRs and MTRs.Your local bank lenders will have the best rates typically.  

And the rates will of course fluctuate over the years.. but if they go up or down then that would apply to all.

Forth, what is your interest rate?

The owner’s mortgage balance is $315K and they have an interest rate of 3.5% and the PITI is 2126.

The unfortunate reality is that the BRRRR book made a lot of sense when it was published, but with the high rates now, BRRRR is much harder to accomplish.

Cash out: $55,000All money out plus roughly $3,500 in pocket.... principal and interest $767/monthCash flow estimated at roughly: $200/monthMy plan would be to refi around year 4 or so before the adjustable rate kicks in.

Since interest rates are now higher than the mortgage on your current home, you'll want to calculate that monthly difference.SIMPLIFIED Example: current house mortgage interest rate is 3%, balance $250k.

The rate will be higher, but if conventional financing and traditional DSCR financing is not working out, this option is available.