I am new to the rental game, kinda. I rented to my parents for 15+ years and when they past I rehabbed the house and sold it for $120k profit. It worked well because it was a rental they were renting for someone else, when the land lor decided to sell I didn't want them to move so I bought it. They paid $100 over mortgage but saved $400 month over the previous rent. With my limited experience explained, here's the situation.

I have ear marked a good amount to start real estate investing. I have a very limited area I want to buy in because I require a school district score of 7-8 through all years. in North West Indiana that covers about 4-5 areas. This is how my parents rented for decades when we lost our first house after my father became sick, giving us an education beyond our house buying ability.

The houses in these areas always multiple offers and the financing I have set up requires a seller concession of 2%. This is very limiting when buyer get multiple offers.

I have the funds to buy with cash, but I am not sure how a DSCR or Cash out refi would work, and if it would limit my future funding to the point of being overly restrictive. Example with conventional I have 20% down, if the refi requires 30% to stay in then the extra 10% is limiting.

Rents in the areas I am looking come in on average $2000 mo. for a place costing $250k. This is not great compared to areas like Gary Indiana where rent is $1500 on a place costing $100k but the social advantage makes me feel better as less investors are willing take lower profits (less land lord competition) - and I know the returns will come in equity in the areas I want to invest.

So the core questions - 

1. would DSCR work well for me?

2. is it different then a Cash out refi?

3. Is there a better option that I don't even see currently?

4, advice and general suggestions?