Seen others just quit making payment and collect the rent money until bank forecloses. 

You cannot use "short term rental income" to qualify on the subject property BUT you can use 75% of the appraiser's rent valuation on the 1007 market rent schedule.

Anyone with experience renting to students in Starkville?

This is because your rental income is NOT calculated as simply as taking the rent minus the payment OR by simply taking the negative number on your tax returns. 

My preference is to rent it to a trusty family member or close friend so I can ease into being a landlord and continue making improvements without it being a big issue.

Moving will cause issues as to who or how will you manage multiple tenants in one unit or you will just rent to one tenant giving you less rent total than renting out two sides of a duplex.  

Hello all, I have a tenant who overall has been a decent tenant (paid rent on time, let us know if maintenance issues etc) however her lease is coming up next month and she admitted to being unemployed for the past few months.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

The property in question is a SF currently rented MTM at $1,650.

My favorite (and current go-to) program uses 80% of AirDNA figures for new STR properties without a rental history, but your current rents will provide a much more solid figure for underwriting.