One person uses it for long term rentals, no pet's, requires super high credit, 3 months deposit etc etc..

It works a lot more for just keeping additionals from coming in later on.

Additionally, i live in Chicago, so i won't see it before closing which is in 30 days. 

hey @Shaydon Childersmost responses are right, this will be challenging for traditional DSCR as they dont like gift of equity; and seller credits would be capped (usually at 2% of your purch price) and only allowable to be applied to closing costs. i have one lender (specifically for 1-4 unit investment properties) which will allow for up-to 90% CLTV... and they are okay with seller financing so long as the seller is in 2nd lien position, allowing them in first lien position. they would max at 75% LTV on their 1st, with a 15% allowable seller-carryback (90% CLTV), and then up to 3% seller credits toward closing costs too. they offer 30 year fixed rates, however, due to the added risk for the lender, the rates are going to be much higher than the traditional DSCR loan.

In addition to what others have said, Lakewood is a city where the majority of the single family home stock is older.

He bought it for 130k, needed 100k in work, he refi'd out at 80% with a credit union at 335k. 

I had a decent idea about the upfront costs so I'll likely pull from savings and or open a no-interest credit card to fund them. 

There is a fundamental difference between charging a flat fee like you are to cover administrative costs and running a maintenance arm out of a Property Management Company that encourages discounting work so they can recognize an additional revenue stream. 

I have no credit card debt. 

After a brief search, the IRS says-For tax years 2018 through 2025, if home equity loans or lines of credit secured by your main home or second home are used to buy, build, or substantially improve the residence, interest you pay on the borrowed funds is classified as home acquisition debt and may be deductible, subject to certain dollar limitations.