This a 3.5% return from rent (less when you account for furniture, closing costs and lending fees) You are banking on appreciation being at least 3% to break even on financing and probably 5% to get a return which beats the S&P500.

A 30-year amortization would decrease your monthly mortgage expense a little bit (though the higher interest rate will also increase it, so you'd have to factor those things to see if they make a difference). 

Also, most of the house/townhouses are run like resort style with HOA fees and amenities.

This is probably the main factor in lower than expected bookings.

This process involves careful consideration of various factors such as market conditions, tenant needs, property maintenance, and financial implications, ensuring that the decisions made are aligned with the long-term goals and objectives of all parties involved.

Is there any fee associated?

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.

My understanding is that Seller pays closing costs as per this contract, including Owner's title insurance, settlement fee to title company and any other Title and Escrow/Settlement Charges.

If you are just looking to purchase solo take all the fees to 0% and LP equity % to 0 as well.Good luck!

I know when buying in a Trust you are able to avoid state and federal fees upfront to be able to establish.