For example, I'm self-managing my Cleveland property and holding my security deposit of $1500 while the monthly rent is $1350, I would have to pay 5% interest on the $150 which is $7.50Would greatly appreciate your responses!

Both ideas are good options.

I don't hold it against them.

I have no idea if they are friends, relatives, or lovers. 

The investor that holds the loan is Fannie Mae any ideas to get the solar panel ( good leap ) to accept a settlement? 

Investing in Ohio, specifically Cleveland,  is a great idea in my opinion.Recently, we have been breaking grounds on large development plans such as the Cleveland Cavalier's Perfomance Center, Blue Abyss aerospace training facility, Sherwin Williams HQ, and not to mention the multi million dollar Metro Health development that was completed recently that has just started adding rapid appreciation in the Clark-Fulton area.These projects will only increase demand and most are in the beginning phases.  

Is it a good idea to form an LLC to buy your first house hack?

If yes, you may want to consider doing a 1031 exchange for the additional properties.If we assume a 4% appreciation on assets, If you hold onto the $170,000 property, you can assume there will be about 6,800 of annual appreciation.If you have $600,000 of assets, you may experience $24,000 of annual appreciation.You may experience less cash flow but there is a higher potential of appreciation.Best of luck to you.

I'm hoping you can help me find some good DSCR lenders and give me an idea of the going rates? 

Investment Info:Single-family residence buy & hold investment in Rochester.