You're already in a cashflowing market, find that 3-4 unit and house hack it with 5% down conventional (borrow the other 95% LTV loan to value) and make sure the numbers work before you get into it.Even if they dont work while you're living in unit #4, you can hypothesize the proforma cashflows with your unit's income upon your vacating that unit after month 12.

One way we do that is by pulling your credit report (but only after you’ve filled out our full loan application and agreed to our conditional terms).

@JoJo Diego What he means is after he purchases the house and makes renovations using his own money (no bank loan),  after he is done with renovations he'll go to a bank and apply for a loan (refinance). 

15yr Fixed equity loan base rate could be as low as 10.25% at 100% loan to value, with a base APR as low as 10.25%.

I suggest you use around 10K to 15K to get a hard money loan set up at 100 percent funding (no money down) to renovate a property and then rent it out- but do not target making just enough to pay the mortgage.

My spouse sees the cash flow coming in but is also worried about the risks that come with it such as having a loan for a property rather than having it all cash/paid off.

If you are just getting out of high school, I don't know that a large DSCR loan seems like a good idea or possible, but maybe easier if you haven't built a ton of credit yet.

When it comes to finding a lender for a DSCR loan, does the lender need to be in the same area as my property, or can I choose any lender, and they'll get me the loan out of state? 

Loans are non-recourse.https://www.biggerpockets.com/member-blogs/7993/73151-what-a...

This makes it to where I will not qualify for a traditional loan.