You are certainly in the right spot to get started House Hacking.

Instead of explaining that they haven't planned the work out to that level of detail yet and getting back to you with answers they don't want to admit they can't answer on the spot and respond with frustration because they don't know how to handle the situation and are emotionally immature.

I'll need to make some renovations like finish my basement so I can make use of that as well and move laundry to a more central and convenient spot so it can be shared.

This seems like a costly fix, as well as a rental safety concern- The basement leaks, the basement is below ground and built into a hill, and there is always stagnant water in certain spots of the basement floor regardless of amount of rain, which only makes it worse.

Birmingham MSA has some spots where you can win but if you have to know that market well to win.

It doesn't take long to learn how to spot a good deal.6.

If having roommates is not an option, you could still utilize this strategy with a small multi-family property.Alternatively, a 2BD MTR might be the sweet spot for you. 

"Attractive cap rates and medium to low vacancy" is spot on.

I can't help but think this should have been spotted sooner and I should have been informed by them.

Sorry, VERY wrong again. the most sought after individual's for lawsuits. the sweet spot are your average investors (neighborhood millionaire) {contractor, lawyer, doctor, nurse, etc) who just turned the corners with assets, of 1 million to 3 million who now has tons to loose from just the threat of a lawsuit let alone an actual judgment.