I just completed a second boots-on market tour of TN markets.

As for by-the-room rentals, many lenders won't allow that and if they do, they qualify you off of the long term market rents (which, as I'm sure you can imagine, would be considerably lower than the actual per-room rents).

Isn't this happening in many markets thought?

Most likely the new lender is going throught the foreclosure process and typically will end up taking the property back.The original posters chances of getting this property back now is slim to none as it will be sold at market value.  

Nonetheless, you can base the DSCR calculation on PadSplit rent (if there's a history of PadSplit income being produced) or short-mid-term market rent (an analysis done at the same time of appraisal).

Now, of course, every market is different.

Tacoma is a fantastic market with a lot of opportunity, so you’re starting in the right place.Here’s how you can connect with local experts and start building your skills:Attend local meetups and networking events.

They are on the market longer and are not going at asking prices but some people are still being very aggressive with their asking prices so it really isn't a great indicator.

Any advice on starting out on this in the Houston or Katy market?  

Do you have a preferred type of property and price range you're looking for in general (knowing the costs can be different based on they market)?