In my experience, the local banks are going to get you better rates and lower fees with their commercial loan products than the "DSCR lenders".

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Rentals generate passive income, so an S-Corp offers no added tax benefit.

So if you buy a 5 bedroom house and rent the spare 4 bedrooms = you can still sell tax-free under the 121 (you just pay back depreciation) If you buy a duplex and rent 1/2 and live in 1/2.

If your rental rate is below the market anyway, a Tenant might consider this to be win as they would get the lower rate in the beginning and just rise to the level they were looking at everywhere else.Step clauses can be written right into the lease, or created by using 3 month lease terms with an auto-renewal at the step up rental rate price. 

The price points do make it hard to cash flow even with the lower interest rate subject tos. 

It’s still relatively affordable compared to bigger cities, has strong rental demand, and no state income tax, which is always a plus.

Use umbrella insurance as an additional safeguard, especially if you opt not to form an LLC.Avoid S-Corp taxation for rentals, as rental income is passive and not subject to self-employment tax. S

Some PMC's will charge a lower percentage fee, but will charge it whether tenant paying or not.

Their ability to recover their money should you default is much lower in this position.