Since you are remote you will need systems in place to manage quality of work.You did mention you have busy day jobs and a child. 

And I should mention that I operate primarily off-market, so I've been thinking about diversifying into another market. 

On BP forum it's usually mention of LLC or personal name with umbrella policy, don't remember mention of JRT.What would you recommend and why? 

To add to what Andrew Steffens mentioned particularly right now. 

As others mentioned just rent it out and over time the value will go up and mortgage balance will go down eventually can sell at a profit.

The first loan officer offered a 7.8 on a DSCR, but the builder is able to do a 5.8 with mentioned incentives. 

As others have mentioned it is a trade off.  

As Patrick mentioned, I would be careful to be competing with the new builds and stick to more affordable price points or places with a large yard or no HOA that will appeal to a different group of people than the new builds will.

Never lose that.You mentioned prop mgt assuring you taps are off and you ended up getting minority flooded.  

I love all those neighborhoods you mentioned NW along the blue line - you can't go wrong long-term2.