Additionally, which markets are currently favorable for starting out in real estate investment?

It is still advisable to see what is on the local market and see what is selling as you develop your plan to renovate a property. 

Given the high interest rates and the need for additional cash, it might be better to wait until market conditions improve.

For those familiar with this market; what is bringing the guests (tourism, professional, mix of both)? 

Every market is different, but for the long term assumptions.

Some lenders will offer a blend of the two with something like a 14 year term.If a lender asks for more, they're imposing additional restrictions over and above what SBA requires.  

Issue is he is paying 750$ a month for the 3br/1ba unit, market value for the area for the same type of unit is $1,819.  

Let me know if you are interested in out-of-state investing in the Memphis, TN market!

I know this is not ideal but I am sure there is a way to manage it especially If I can house hack a multi family building.I am also open to any meetups in the STL area since that is my local market.

I'd find off-market deals, do some cosmetic updates, and then refinance.