The cons as i see it include loosing the 2 of 5 year cap gain exception, typically not an ideal rental because the emphasis at purchase was buying a good home for your family and not a rental with optimal return (my ex-home consistently has the lowest cash flow for equity in my RE portfolio), not disconnected enough from the property causes addition angst on damage and may result in over improvement.  

Typically, we set up entities in the state in which the property resides.

Perhaps do a case study with a hypothetical deal you think is typical for what you are looking at and compare it to the alternative investments you might use and their expected returns.

. - Just be prepared, because a motivated seller typically has a property with issues you need to be sure you can solve.

Generally, the biggest difference is that DSCR Loans often have prepayment penalties attached which typically will have a 1%-5% fee if you prepay the loan within the first five years so its the "risk" of having to pay a little extra fee if you sell or refinance the property pretty early on.PS - check out this series of 10 articles published on BP on all things DSCR Loans which can give you a full rundown on everything you would need to know when using this type of loan!

Helps with your debt to income, better opportunities at cash flow, and typically requires less down to purchase.In regards to challenges, I usually build in an extra 10-15% to deal with things that I can't see behind the walls, including dry rot, electrical or plumbing issues, etc.

However, if this is your first flip/investment it typically is easier to do something local and then expand to further markets.

I’ve been scanning the market and come to understand as my first investment I’ll probably have to find an apartment/condo something like that and I typically hear of STRs typically making more cash flow etc.

I know when you make an offer you typically specify how you plan on funding the deal.

Companies typically last only ten years on average.