I have focused my research on house hacking due to the lower upfront capital requirements with an FHA loan.

This implies residential units can be built at lower costs and provide better return. 11) adding an ADU to SFH can make the SFH fall under rent control.good luck

LTRs with long term conventional financing and standard management aren't really cash flowing anywhere right now. sure, there are lower cost markets that look better on paper, but there are costs associated with those supposedly cheap markets as well - deferred maintenance, more challenging tenant base, higher cost turnovers as a percentage of the rent.2. i wouldn't pick a random market thousands of miles away based solely on statistics or numbers. 

The lower barrier to entry would be excellent for my personally smaller net worth.

That will get you looking at cash flow and end up in a lower rated area than you think.

The market does offer lower priced investment opportunities and higher cashflow returns, with ongoing revitalization projects like the DORA boosting appreciation potential.

However, many DSCR lenders have a minimum loan amount of $100K, which can make it challenging for investors to secure financing for lower-priced properties. 

I prefer to stay further from the coast and hopefully further from major storm/flooding events (potentially lower insurance costs).  

I gained equity in the property, and I got higher rents which lowered my living expenses while living there.

The equity is actually what you are paying for the property.In this case let's look at the numbers that count,...the current numbers.You have about $500k or more in equity, which is buying you a property that's worth about $700k (I went with the lower PV.