If your goal is to buy and hold for a long time, you need to consider factors other than just cash flow, like appreciation. 

For distressed properties, focus on markets with growing job sectors, good schools, and lower crime rates, as these factors drive rental demand and long-term growth.

Maybe there are things I don't know and haven't factored in.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Either they choose to move out or you get paid for the “hassle factor”.

Aim for $500/mo min and even that won't allow you to tap into unless that's after cap ex, management, vacancy is factored in.

For a 2 bedroom my projected ongoing is around 13-15k (not counting the rent) at the end of the year because this is my first Airbnb Arbitrage I have and will make mistakes expense wise, the start up costs also is not factored because furnishing and starting everything from scratch obviously will skew the ongoing expenses which would add another 5-8k but I played it smart and have most of the funding charged to buisness credit cards with 0% APR for 12-18 months such that I save money and can take the year in paying back also with sign on bonuses which will save me up to 1.2k or more.If and when I hit my conservative projections my profit should be around 16,300-22000 by the end of the year this is after rent, expenses, cleaning fees and so on. 

When working with private lenders, the costs for preparing loan documents can vary based on a few factors, including the complexity of the loan, the attorney’s experience, and the geographic location.

The big distinguishing factor between Rockwall proper and Royse City is school district.

You're going to need a far greater return to justify the risk and hassle factor on this one.