They will hit you on the interest rate and LTV.

So your success rate is 0.1%. 

debt coverage is a greater obstacle...than appraisal at 75-80% LTV" - 100% agree...DSC is determining loan proceeds in this high rate environment, not LTV.

After the low rates started to increase when the FEDs pushed to raise them the inventory went up significantly (in January 2022 there were active listings on the MLS of 40-45 listings, now if you look 160-170 listings).

As for house-hacking an existing quad, only putting 5% down in this high interest rate environment will almost certainly mean you won't be "living for free" as is the point of house hacking.

Please note, based on the numbers provided you will not be cash flowing. 154k loan amount - 30Y fixed  4k in annual taxes & Insurance 7.75% Rate Monthly PITI Payment = $1,436.60Your estimated rental income is only 1k-1.4k per month.

Even today, I'm finding properties in a Class C town, with 15%-17% CAP rates.  

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

It depends on how much capital you have but I recommend either house hacking (3.5% - 5% down) a 2-4 unit property or you'll need 20-25% down for a non-owner occupant purchase which comes with higher rates.

You could do an 80% LTV cash out on a DSCR loan, however you will need to be able to debt service at the higher loan amount and rate to qualify.