Is it because the loan you assume after a cash-out refinance is more likely to be higher than your gross cash flow? 

If I were to approach a seller of a $200k home, and they had a remaining mortgage of $100k, could I get a new bank financed loan for that $100k, and have the seller finance the remaining $100k of equity to me?   

I assume you’ve got a loan that says you will be living there.

If you are going to be an owner-occupant, want a low down payment, and are planning to do a renovation, the FHA 203k and Fannie May Homestyle loans are your best optionsHow do you know the property is currently upside down on the mortgage? 

Now my investor network as expanded and the best split I have experienced was 65/35 in my favor but I invested 40% of the cash and created over a million in imputed equity before any investor dollar was raised allowing me to originate a bank loan at 87% LTC.

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

My belief is that you will be challenged to realize a 10% savings loan n your first effort and there is some chance it will cost more than if you used a GC.  

Should we pursue a "cheap" rental in order to build rental history in the hopes of securing DSCR loans down the road? 

When my loan was not going to close, it was one of the options that my broker and lender told me about and actually referred me to for a conversation.

@Steve Powers is correct that these were mostly originated as owner occupied loans.