Is there a chance that rates and prices decrease in the next 1-4 years as our cash reserves increase, thus creating a better scenario for us first time investors?

.- They claim an 8-12% expected net annual ROI, which sounds promising.But it's always better to do your research and understand the risks and be sure before investing any money.

I'd consider something with a longer manufacturer's warranty because they should last longer probably because they have a better anode rode to sacrifice and protect the tank. 

It is showing I can do significantly better with STR in SF on my SFH properties.

House hacking is great for an organized and responsible college student because you can do it in a small single-family and rent rooms to your friends who probably all want to get off campus or into a better house, or you can get a multi, room hack with you on your side, and room hack the other side and make more money.

I think tenants get better quality housing and investors get better returns.

Then you can own less of better quality.  

You can certainly start there, but you would be better served to find some local KC investors in here and find out who their agent is.You also have to remember, agents get told all the time, I am new, but I am going to do so many deals, so it's hard to vet new investors.

But it looks very risky and there are much better options out there in my humble opinion.

There are better markets if you are interested in out of state investing and fair chance of getting better returns.I would start by fine tuning your investment and success criteria, then pick and research couple of areas before you make your decisions. for example Ohio- Cleveland, Kansas City etc offer better chances of cash flow vs Tennessee-Clarksville may offer better appreciation.