I have looked into the DSCR loans but you would still need to come in with a large portion of the down payment correct (the remainder of what is under the 75% loan to rental income )correct?

I'd honestly work on increase your income and saving more, try to get to 40K then go the hard money route.

I do think though that if you want to live in one of these desirable locations, you better have a solid job and income lined up because at this point you should know better.

More info here:DSCR loans won't use your income to underwrite the loan.

My incomes not going up?

You can only wipe out your 2023 rental income down to zero but not go below zero.

This way, a lender won't be looking or asking any income questions, it would just come down to what income the property would bring in. 

Increased rates makes it more difficult for first time buyers because 1) the financed payment goes up 2) it decreases movement which results in boomers, etc not downsizing which lowers volume on the market and helps keep the prices from falling.Other drivers for these large rent increases are the recent property appreciation (last 10 years have had huge RE appreciation) and rents lag the property value increases, the Covid eviction moratorium has identified new risk that must be reflected in the income, the continuing trend to move to high growth areas which results in a large housing shortage in these areas, the lag of new housing starts that has existed since the Great Recession.  

I'm struggling to figure how which way to file on Turbotax (with rental income or without).

Are the profits capital gain or income?