-A prequalification happens when you provide financial data and, in return, you get an idea of how much you can afford.

Then they qualify your income if you can afford the home.  

Price points are very affordable here, rents are decent, however population decline has been steady as well as a lack of good paying available jobs in the area.

Purchase an investment property in a more affordable market.

I'm hoping to get either a 2b/2b condo/townhouse because that's all I can afford and rent out one of the rooms.Assuming I could afford the 20% down for a conventional mortgage, would it be smarter financially and investment-wise to try and put as less cash as possible and pay PMI or go the traditional route and pay 20% or more?

Also afraid we won’t ever be able to afford another place with the way property has shot through the roof here.  

Its what ever you feel right doing and can afford to do.. 

@Nathan James Brickkicker does a good job, affordable, easy to schedule, fast and does TMI too.

These guys are often more familiar with day to day product instead of high-end/spec homes, and good property management companies will cull a list of responsive, reliable, and affordable contractors that are licensed (if required) and insured.  

Everyone on the property is concerned about health and safety related to Covid and we are all vaccinated, except for the kids.