Trying to balance proper due diligence against my desire to just acquire a bunch of mediocre units!  

Just ideas, talk to your CPA to make sure you are doing it properly. 

Which reminds me that I should mention that I’m not opposed to living a not-so-luxurious lifestyle in the short run.

If you are looking for proper guidance from someone that has house hacked quite a few times and has the knowledge and experience to help get you going in the right direction, I recommend reaching out to @Josh Green.

The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.7.

And how do I roll this into a cheaper mortgage (my dti would be too bad for another conventional).Maybe a lender would be able to consider the electric "working" with the proper inspection?

Start by talking to a cross-border CPA and attorney to handle taxes and legal structures properly.

If you learn how to use Hard Money loans properly and how to find good deals in need of rehab, there are plenty of areas of the country where you could buy 3-4 rent properties in solid middle class areas with good cashflow.

While living with tenants can pose challenges like privacy concerns and tenant relations, clear boundaries, professional management, and proper tenant screening will help you succeed.

It's a little different but structured properly it beats the work, hassles and uncertainties of flips.