You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

Is DSCR loan the best option?

One of the deals you bought into is a typical example of that.

If you plan to use a third option, look there as well. 

We typically run a 4 page report that has all data from 3 of the closes comps (ENEMIES), and also larger market data for the neighborhood and then the city as a whole. 

Even though some brokers can make and sell consumer-purpose loans, these can be a nightmare to foreclose/collect on.Brokers will typically keep the points.

Certain suburbs don't have many options for multifamily, so you might have to open your search to other locations.

., seller financing, lease options, etc.)?

The hard money loans typically will require a pay off in 12 months or 18 months or something like that. 

This is the 2 units + 2 ADUs scenario.I am worried Scenario A might push future financing option into commercial real estate only, which will limit my cashout refi options and the future buyer pool.From a lending perspective, since a "Land Use Restriction" is required to be recorded on the Deed to limit rentals to be longer than 30 days, the property thus will not be considered a true "5 unit commercial property" and my worries in Scenario A will not come to pass, right?