Equity earns 0% interest (inflation will destroy your purchasing power) your real estate investment will Appreciate or Crash regardless of how much down payment you put on your home.

To improve cash flow, consider a higher down payment, mid-term rentals, or renting by the room.

It might make the most sense to just sell your primary residence and use it as 40% to 50% down payment on your future home. 

Second pro is that you get to lower your living expenses or live "rent free" by having your tenants pay for your mortgage payment.

In my case, I have residential rentals in one LLC, commercial properties in another, self storage in a third, and my real estate company operates in a fourth.

Also DSCR typically has pre payment penalty while hard money does not. 

In addition to taking 6-9 months to close, they are also subject to (i) annual audits, (ii) annual REAC property inspections, (iii) recurring annual MIP payments on top of your interest rate, (iv) large initial deposits to the replacement reserve, (v) commercial space limitations to 15-20% EGI / 25% NRA, and (vi) less forgiving underwriting with 7.00% minimum vacancy rates when determining our underwritten NOI.

It will be very difficult to cash flow in Austin using traditional LTR methods unless you put down a huge down payment.

Low Down Payment OptionsGerman lenders often offer financing programs requiring only 5-10% down payments, particularly for primary residences.Strong financial regulations in Germany support these low down payment options.3.

We would all love to have that note that has 5 years of perfect payments, 800+ credit score and a 20-25% down payment.