I have a huge personal mortgage (P,I,T,I) that currently takes up around anywhere from 25%-38% DTI depending on how you calculate gross income.

Do not let the tax tail wag the income dog here. 

Also, my CPA filed the income as 'short-term capital gains', and after a bit of research i've seen that my income was suppose to be reported as standard income, or is that not a big deal?

Also, all the online tools I've seen so far charge money for me to learn who owns a property after I enter the address. 

Run payments via an online platform (We use Rent Manager)3.

and with record new class A multi-family coming online now and 2025 in Austin/Dallas/Houston, perhaps focusing on multi-family would be most lucrative for you, which you already have personal experience in, over next few years then you can acquire really good value deals as prices will likely come down quite a bit, ie more supply/higher 10 yr etc.     

But also don't want to buy something that doesn't generate income.

                                           - Condo- pro's- own something that will appreciate, can still be in the city, can rent out if we move- passive income.

In many cases, rental losses can be deducted from your taxable income, but there are limitations and eligibility criteria that may apply.

To remove the rental income generated to me personally and have it towards an LLC.