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You’ve literally just described the strategy.
Subject Expert
The strategy is to find properties that cashflow despite the higher rate for investment mortgages or DSCR loans.
If you’re going to short term rent the property, then you may be able to qualify for a “second home” mortgage, which will be higher than a primary home mortgage but lower than an investment mortgage.
I’m bought vacation properties as second homes and rented them out, but the mortgage company essentially knew I was going to do it.
You have to qualify as if there’s no rental income.
-Owner financing is one option
-Assuming an existing loan
-Find financing partners
-Using lenders that don't offer agency debt, such as with a credit union or insurance company
-Bring the deal to an experienced operator for a fee or equity in the deal
-Double closing, where you hold the contract and sell the property to someone else
-And more