I was pre qualified for a DSCR Loan shortly after buying my first house but due to financial constraints to come up with 20-25% of the down payment I feel like I’m stuck.

Last option, moving to Houston where houses are cheaper but don’t seem to appreciate as well, taxes and insurance seem higher and cut into the profits.

Make sure to sign a deed of trust (or mortgage depending on the state) and record it through title from the seller.

Depending on location you may or may not want to continue with the plan to rent it separately.

This period of warmer temps (which is technically not even completely true depending where, how, and who you choose to get your data) has happened before and will happen again.Still, if you enjoy cool. wet weather and Blue politics I imagine that Oregon would be a splendid place to invest.

He also said insurance and taxes can be too high eating DSCR loan with current rate and I will make less money than Ohio and Kentucky state (example).

It is what I have my clients use, because you need to separate out your finances for each property at Tax Time. 

It will depend on what the contract says.

NOI (pre-loan payment) 59K.

An FHA mortgage will not have a pre payment penalty.