“A new Michigan law bans many landlords from rejecting tenants based on source of income, like housing vouchers, veterans’ benefits or Social Security.Gov.

I mean myself and any bank would need more details, but if you utilize that large sum as a downpayment and have a small mortgage, wouldn't you easily qualify for the debt to income?

What data source determines the property class?

Jaycee, it will likely be personal income with other money coming from a lender.

Typically 75% of rental income can be applied towards your DTI for qualification. 

I am working toward passive income to live off of.

Income from leveraged real estate or active business income.

Also the ability to repay -  your source of income. 

Are there any tips you might have on sourcing great deals, deal structure, and how to know whether LTR, MTR, or STR is the best route to take?

I would suggest getting another full-time job for the time being and investing/doing STR on the side until you can fully and comfortably replace the income that you would be receiving from your job.Is your LTR in need of repair?