You can't start charging existing tenants until you choose renew their lease.

Hey @Naman Shah, welcome to the BP community.Either choose the state you live in or the state you're doing business in.

Just choose the most important 3-4 things that are required for qualification and include that in the advertisement. 

And it would be a respectable house, but we choose to live with my in-laws, and we are frugal as a family because this life isn’t about working 55-60 hours a week, and not seeing my family.

Ideally, we'd live in the home (Santa Clara/SJ area) for at least 2 years and then rent it out.House-hacking is our plan A, but assuming it is too hard to find a deal in the area we're looking, which option would you choose, or is there a better way to use our cash?      

I am finishing up coursework for my RE license so will soon need to choose a broker. 

By doing so, you can choose the quality of product you want and the tenant doesn't have to come out of pocket for supplies or provide you with receipts. 

In this instance, I would recommend finding local flippers or wholesalers in your area to teach you the ropes and you become their apprentice thus gaining experience in the field and an income.Whatever you choose to do, remember that we are currently in a seller's market where prices dwarf 2008 prices in many areas and so getting a loan for a property as a 17-18 year old can be next to impossible at a favorable rate.

I have 2 options for a mortgage and I'll like to know which one you'd choose in my situation.

You can buy a non-performing property and turn it around or you could choose to buy a turnkey property from the beginning.