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.

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.

He noted this is likely the best long term option as I should have no other issues moving forward.I am confused and a little shocked as the inspection report from two years ago came back as structurally sound.

Of course, with the key entry option so if the lock fails, there is a lockbox with a key to access the home.