I am interested in buy and hold deals to generate a large amount of passive income so that I can angel invest and be financially free.

paula pant is awesome, I also like the "rental income podcast with dan lane." 

Rural areas are typically defined as areas with populations of fewer than 35,000 people.Use: The property must be used primarily for rental purposes and provide affordable housing options for low- to moderate-income tenants.Developer/Owner Eligibility: The developer or owner must meet specific eligibility requirements set by the USDA, including financial stability and experience in property management.Income Limits: The tenants who will be residing in the multifamily property must meet income eligibility limits set by the USDA.

The applicant has no verifiable income (he is an artist and woodworker), but has basically zero debt and an excellent credit score (almost 800).

125% income to debt seems like it could be tough to find right now, but I am considering a DSCR. 

It's your job as a landlord to pre-screen potential leads (gross income, credit score, evictions or not, etc) and then only schedule showings for those people that meet your screening standards.

Usually, rent-by-room generates higher gross rental income than whole-house rental.You could also look into STR on the house and time-block when you want to use it.

This will allow you to take deductions against your ACTIVE income (W2 paycheck).

This is my wife's first job, so she won't get much of $$ on her mortgage alone, but I want her to eventually get a mortgage under her name once she establishes her income in the next couple of years.

However, financial freedom is not simply replacing your current income; it requires maintaining your current lifestyle for life.