This math will get better as you will have more beds in the house. 

As an investor you should be able to put that money to better use than the savings of some interest.

Once the business starts doing better and I have 2 years of tax return from the business, do I have to use alternative forms of financing (like a dscr loan) or can I still qualify for a conventional loans with lower interest since I now have 2 years of tax return from the business (given that I didn’t write off too much from the business income)?

@Nolan Mahoney buying a condo is much better than doing nothing if you are going to be in the area for a while.

Do you have any recommendations on which cities/ zip codes you find better and which company would you recommend for property management?

Sometimes it is better to have them collect and send you the rent so you don't keep track of multiple people and when you impose a late fee it is on them to pass it on to whoever was late. 

Also you better be cash, or it will be extremely difficult to get any good dealsGood luck 

Better to lose nearly $10k in rent (~50% of 90 day rent value) than get a risky tenant.Especially if you self manage, make sure you understand the protections provided mid term renters in CA.Good luck

Cleveland you'll see better cashflow and Columbus has higher probability for appreciation.I personally use Helocs only as operating accounts.

So Erik has some great real world advice.Remember that you can pick a better area in other parts of the country and still self manage.Your idea of a 4 bedroom house is good as that will generate more revenue than a smaller property and appeal to more people.