If my net profit will be around 900k give or take, then my profits get lower....It would take more than a year before I am in the red....does this reasoning make any sense in that fact that losing money here seems lower risk then I am hearing from people?  

You should be able to get 20% down on 1-4 units not 30%, which would stretch your dollar further as far as purchasing power but the leverage will lower your cash flow.

My W2 covers my expenses personally. 

We are taking a cash out loan on my primary residence since the rate is over 1.25% lower.

Also we need to keep investigating about how can the interest and expenses can be deducted from filing. if you can share some of your experiences would be great. 

Could you share numbers about the income and expenses, including CapEx, maintenance, property management, etc.?  

I will be watching that property to see when he lowers the asking price.

You can have an attorney draw up some kind of partnership agreement, but that also cuts your ROI and increases your expenses potentially for tax advise. 

If they are stuck on a rate push the amortization out and do a balloon, otherwise I would work on getting the rate lower and the price they want as you will get mor principal paydown vs less with a longer amortization.

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.