I just closed on a house in Summerlin and the renters are basically standing in line for options.

I have a lead who i offered a subto/seller finance option to. back story lead is getting a divorce and can get ~340k if listed. asked 300k if sold to me, everything updated within past 5 yrs except carpet and interior paint.

Out of state you can have more variety of options on price and strategy. 

The only options provided is move in specials or driving down rental price.

zonesage.com is a quality option.

@Paul PompeoInvesting out of state can be a good option if your local market isn't a good fit.

What other option would be suggested rather than DSCR? 

Let's say I have two options, Own a $200k house outright with $20,000 in the bank, or Owe $100,000 on a $200k house with $120,000 in the bank.

You have a few options for cash-out refinance and from the information you provided it should work.

I think you are correct in your thinking - a lot of lenders right now are pricing 30-year fixed rate and 5-year ARMs essentially the same, with only the slightest benefit to the ARM option - generally because there is a very low probability priced in that rates will be higher in 5 years.