I'm trying to understand how house hacking is so profitable, putting down so little money, 3.5% or 5% would make for a hefty mortgage payment wouldn't it?

Enjoy the increased cashflow and look for ways to house hack so you can reduce or eliminate your housing expense which is one of the largest expenses anyone has.Imagine a lifestyle where most of your personal debt is paid off, you have reduced or eliminated your housing expense and now have the cashflow to focus on making your money work harder for you through real estate investing and maybe can free up some more time to do that now that you have reduced your living expenses and can work less.To your success!

Force you to pay  a couple thousand extra in housing expenses and then moved back there is zero chance you would do it.

I would ask the lender you applied with to disclose how they calculated your DTI... sometimes they fail to add back in depreciation or deduct costs from your schedule E like tenant turnover, improvements, etc. that shouldn't be included in the DTI calculation. 

I've lived in my primary residence in Reynoldsburg, OH since 2015, house is almost paid off (just a few grand left).

I talked to 2 property management companies who I should rent the house out to one tenant/one household (e.g a couple or family).

I know many people have indoor pools in the Pigeon Forge area and I'm sure many people have outdoor pools in warmer climates also.I put in a Pool Guru device at my house.

Housing is a necessity so as long as you are in a decent area for rentals it will rent, but it will come down to price.

I'm currently exploring the possibility of buying my first home in the Pine Hills area of Orlando, with the intention of house hacking.

I bought a duplex in the UP of Michigan to house hack.