My experience has taught me that utilizing partners helps to alleviate some of that. 

Just purchased my first 2 rentals. I go to Chase bank to open a business account. The bank says "You need a business account and to open one of those, you need to register your business with the state." So, I do that....

If the foundation and the bones are good, then that alleviates a big concern.

With that said a LLC with a good operating agreement can help to alleviate most issues by anticipating them. 

A good business structure can help alleviate most of that. 

One could agrue that you may want to start with PM on day 1 so you can also build your team, alleviate your time, and keep focused on the future.

What other zips/neighborhoods would you suggest to alleviate that higher risk?

This is causing our DTI percentage to be too high for hard money lenders and banks to be willing to loan.The above facts have me applying for W2 employment right now to alleviate this issue, but that will be 30 to 60 days before solving the problem, minimum.My wife's credit score is around 790 and my credit score is over 800.

Screening your guests properly and setting tight rules will alleviate a lot of this.....

This implies renter options include a) rent at the existing rates b) move elsewhere (some people will choose this option, but not enough to alleviate the housing shortage) c) purchase.  4) the increased interest rates make it much more difficult for the first time home buyer (i.e. current renters) to purchase.