So are least options still a thing in Texas? 

There might be cash flowing options for you that are less hassle than multifamily. 

What other option would be suggested rather than DSCR? 

I think you are correct in your thinking - a lot of lenders right now are pricing 30-year fixed rate and 5-year ARMs essentially the same, with only the slightest benefit to the ARM option - generally because there is a very low probability priced in that rates will be higher in 5 years. 

You have a few options for cash-out refinance and from the information you provided it should work.

A multi-member LLC taxed as a Partnership with foreign partners is not subject to FIRPTA.

all these millionaire using leverage and creating low debt for themselves.All CEO issuing stock options, issuing corporate bond , stock buyback is all about creating low cost debts.

He noted this is likely the best long term option as I should have no other issues moving forward.I am confused and a little shocked as the inspection report from two years ago came back as structurally sound.

@Paul PompeoInvesting out of state can be a good option if your local market isn't a good fit.

The best option I see for you, if you can't get the line of credit, is to partner with one of us local rehabbers that have experience to make sure that $70k is legit and keep the project moving on time and on budget.