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

Hi @Christian I Presant - I'm an investor & broker and have worked with seller financing options before. 

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

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

zonesage.com is a quality option.

What other option would be suggested rather than DSCR? 

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

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.

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. 

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