You'd hopefully get a higher EBITA multiple too.  

and only close IF they find a buyer to either pay for the contract assignment or pay a higher price for the property?  

With it going higher in the short-term.

I know this is a higher mortgage, especially for a first house, but does it make sense?

Other than the additional transaction costs, I would think it's a solid play overall for higher risk deals.Very interesting discussion. from my knowledge and then advice.. if the borrower signs the dil at closing they have already transfered it back.. it does not need to be recorded to be valid its valid the date its signed so there is that..

Everyone has made great points regarding higher leverage for having the rehab budget within your loan amount but it can be done without it as well.

However, be prepared for limited inventory, higher competition, and possible compromises.

Someone there advised to buy 1976 or higher.

The higher appreciating plays of these will be in TX or OK but with the higher interest rate that comes with the dscr loan I'd be prepared to put more money down. 

I generally prefer higher since I don’t plan on putting in small claims, it’s basically just for catastrophic loses and the savings in premiums over multpiple properties for multiple years should balance that out if I have ever have to use the insurance.