Once fixed could rent for 1500-1700 /mth.

Most properties over there get snatched up really quick since they are in good school districts with low purchase prices and you don't need to do super nice finishes to get top of the market rent or ARV. 

Tap into those markets.......generally your biggest wholesalers can potentially be your biggest buyers.also go to Your rent section on zillow in your area. research a couple of the owners of the rentals and reach out.

But, I am thinking about house hacking in the near future and renting out by the room.

Essentially no income details are required and the loan is based off of the collateral of the property and income, calculated using the active rents, appraisal rent schedule or even STR income or projected income.

We are planning to rent the home.

First make sure you are licensed and insured to be able to legally manage other people properties.Research what the requirements are for your new location. 

Because of the money involved with lost rents, we are now contemplating legal action along with our homeowner client. 

The alternative is to find a seasoned investor in the location where you plan to invest, work out an agreement with them to bring their money, time, expertise, relational capital, systems, etc. to a deal you bring to them, and let them show you the process from beginning to end.

I will be paying the mortgage without being able to get a rent for that.