Instead, I would have assumed a mortgage for a fairly new home(5 years or less) at a lower interest rate at 2.75% to 4% and used my loan as the down payment to cover the equity that seller was trying to recoup. 

It seems from my experience so far with most lenders ,they will roll back in depreciation expense to find loan eligible income but that is it. 

Its just so hard in the current environment to get any cash flow with SFR (unless you bought when rates were lower or are doing a well-executed BRRRR). 

This is essentially a much lower-risk BRRRR, since you will be living in the property and using owner-occupant financing, and also able to do much of the work in your spare time (if you have any) on nights and weekends.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

I will be the first to share I understand the value in being able to recycle capital through refinances to grow a portfolio but this should not be done at the expense of other fundamentals that are more telling of the properties current and future economic performance.

If you don't have the funds right now and your credit rating is lower, I'd wait. 

Land seems expensive, especially compared to Northern NM which is another market I am considering.

This is an admin fee that covers the increase expense and headache of marketing, showing, screening tenants, etc. - Tenants are responsible for the rent until the replacement tenants move in or the end date of the original lease. 

Just checking my math.This is obviously after all expense , depreciation, cost set, property tax write offs, 20% etc.my question is are my assumptions correct?