The best strategy depends on your goals, but here’s a breakdown:Selling outright would result in paying capital gains tax and depreciation recapture, but since the appreciation is minimal, the tax impact may be relatively low.Gifting the property to your son could potentially allow him to sell it with a lower tax rate, but since he hasn't used it as a primary residence, he won’t qualify for the exclusion of capital gains tax on a primary residence, and you'd need to account for gift tax implications.1031 exchange could defer taxes, but you would need to purchase a like-kind property of equal or greater value and meet all the IRS requirements.

I've reached out to lenders here on Bigger Pockets- but their rates & terms seem high (DSCR or just not good terms)- I qualify for a conventional loan, but my DTI is almost maxed so why pay an extra 2-3% DSCR when I don't have too. 

This means you’re effectively living for free, or close to it, while building equity in your property.Low-Cost Entry into Real Estate InvestingBecause you're living in the property, you can qualify for owner-occupied financing.

To me, this meant longer vacancies between tenants to find a qualified tenant.  

The challenge is going to be qualifying for each property. 

If the developer doesn't deliver on time, there's usually a grace period and then there can be (hefty) penalties.

To qualify for debt, lenders generally look at net worth (aim for the loan amount), liquidity (10% post-close), experience, and a solid credit score (ideally 680+).

If you’re approved for the mortgage they assume you’re qualified to pay it on your own so if you can afford the monthly don’t overlook the power of equity.

Improved DSCR: If a company’s DSCR has increased significantly since the original loan was taken out, it may qualify for better interest rates or terms, making refinancing advantageous.2.

is that it typically comes with higher rates on the first mortgage, if you're low income enough you might qualify for near free DPA but most DPA's open to all income brackets are typically at higher than market interest rates.