Time overcomes low cash flow to some degree... rents go up while your mortgage stays the same and your tenant pays down your mortgage.  

You are young and presumably single, so living in a master suite while renting out some other rooms is easy.

This means you'll get a good cash flow, but appreciation of the property will be low.In the phoenix area there is more ownership and less renting, but due to prices increasing faster than inflation we are seeing a rise in renters.

We bought a single family up here last year and converted a garage to an ADU, which rented out really quickly to a great young couple.

Market fundamentals to consider: population growth, average income, median home price and average rent, crime rate.

I would study the listings from the top performing rentals in your area to see how they are overcoming any challenges with location.

We also have a brick-and-mortar location in the DFW area.

@James Landsford That punch list is a lot of work that won't necessarily help with you increasing rents over time.

I've actually had a lot of success renting by the bedroom in the Sedona & Verde Valley (Arizona) area.

I've seen some people house hack a single family home by renting out the rooms, but keep in mind that traditional lenders would not be able to use the income from renting out the rooms (known as boarder income) towards additional income on the application.