Is the 7/1 monthly payment lower enough to offset the hedge of a 30-year fixed?

The lower cfm may not require make up air, check your local codes.

Our expenses have gone nuts and we aren't able to, or ethnically able to push rents fast enough to break even. 

I like to think of lost rent as a regular operating expense and factor it in as vacancy rate.The most important thing in this case is to not take it personally, don't let it make you mad or bitter.

In this case, however, you have option two: lower the rent or have one or two renters who will help with your payment until it's fully rented.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

And rent has been lowered at least 2-3k from initial asking price.  

I'm guessing you've already looked at your expenses and cut all of the extras.

A major electrical expense has basically no ROI.   

I rent out the lower unit and for the upper unit, I rent 1 of 2 bedrooms.