Considering a rate buydown on a DSCR loan?

Just like the asking price, just because the owner suggests one interest rate or term doesn't mean you can't offer something different. 

Most lenders will also look at debt coverage ratio which limits leverage at this time due to higher interest rates.

Another alternative here could be refinancing although it is likely your rate is well below today's rates.This is not financial advice, I am not a lender... just sharing some insights that have been shared recently. 

You might want to check out listings in your neighborhood to get an idea of the going rates and what amenities other hosts are offering.

He may accept a lower rate than bank financing.

Since fix-and-flip income is classified as active income, taxed at ordinary rates, this setup helps minimize overall tax liability.To protect both members, draft a detailed operating agreement outlining roles, ownership percentages, profit-sharing, and an exit strategy in case the business dissolves.

Using a CAP rate of 7%, the $16,000 becomes= $228,000 of added value. 

If the rents are already nearing market rates, will she be able to go up that much? 

As you mentioned intentional flips are typically considered inventory-This means the income is ordinary income and as such: - Is not a capital gain, so hold time of 1 year does not change to a better long-term capital gain rate - Can not be invested in a QOF Deductions related to it can't be pushed or changed- all costs are accounted for with the inventory component