I noticed that rents for LTR are pretty high but still will not be enough for positive cash flow.

The rental property itself provides the tax benefits and not necessarily the entity structure.Depreciation should wipe out your cash-flow from being taxed, especially given the high prices of properties right now.You should have your tax returns reviewed if your properties are reporting positive taxable income.

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.

Unless the seller/lender is added to title as a joint tenant, which would be downright stupid, the only other way they are “getting the property back” after the death of the buyer/borrower would be to foreclose and be the high bidder at the auction.

Like others have mentioned, you will pay structurally more for a home warranty than self-insuring for the cost of repairs.This may be worth it if the value proposition was that you could be hands-off whenever a covered item breaks.In reality, it adds significant overhead because there is the claims process and you give up control of the repair timeline and quality as you have discovered.

I imagine anyone can collect debt from anyone.but you'll need judgment to get tools for debt collector to use like wage garnishment.

And is it also a seller market right now, despite the high interest rate and it is hard to try to go lower on the price?

My question is, typically do banks lend on primary/investment properties with such a high price? 

Look for areas with high need for rentals, growing numbers of people, and rising business activity.

I knew this property would be in high demand.