I will not accept a credit report handed to me by a prospect. 

You seem to have addressed the marketing problem with your property manager, but how are they responding to prospective tenants? 

Obviously paying interest on underutilized capital is sub-optimal but when factoring in the cumulative proposed transactional savings, the annual total interest cost could be equivalent or lower than the net of an alternative home equity line of credit on the same principal loan amount.One 'hack' could be to delay the actual closing of the DSCR loan until a quality purchase prospect is identified and/or near under contract.

Take into account variables that could affect your cash flow, such as the stability of the market, local tenant demand, and prospective changes in interest rates.

You can't legally deny someone because they are "section 8" prospects..you can, however, deny a tenant for other speculations, such as bad credit report, poor rental history etc..I don't see why you wouldn't want to rent to section 8 prospects though?

As @Jason Park mentioned, definitely avoid wonky layouts or adding a tiny bedroom just for the sake of bedroom count, as these can actually make your property significantly harder to rent to prospective residents.Code Requirements. 

I'm hoping to network with some of the higher performing agents up there who prospect daily, as I have some questions about your market and how lead sources vary in viability there vs here.

Mortgage (3%) = 490,000.Prospective beach house:Price = $2,000,000.

It's a risky prospect, so be careful.

We start showing rooms to prospective tenants right around a month before lease expiration.