Another great option is the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat), where you buy a fixer-upper, renovate it, rent it out, and refinance to pull your cash back for the next deal, and this is a good route because most private lenders can go higher LTV than on a rental loan! 

The only other option I see is a short sale, if you don't need to purchase for a few years and don't mind a temporary credit hit to save the $60k.  

Your credit score will be worth improving to acquire better financing options.

@Kwanza Price - Syndications are a great options and even some QOZs. 

But you have a few different options.

Would a DSCR loan be a better option than a hard money loan for this project?

Investors are already on board with the options weve got, just shopping for the best option.

There's zero reason to do this when there are plenty of options to avoid it. 

@Juliann Morala Yep, a buyers agent that works exclusively with investors will have all the info you need and lots of options on contractors, lenders, attorneys, inspectors, property managers.

I was originally drawn to it because I wanted to have one place where all my tenants paid rent and where they had the option to set up auto payments.