House hack a small multi once per year for 5-10 years and you'll be financially free.

This is where a lender will review your financials and see how much loan you'll get approved for.

I’m getting DSCR loan quotes for around 8%.

DSCR loans won't use your income to underwrite the loan.DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.Here's a bit more in detail about how rates are calculated for DSCR loans:1.

Taking out a loan for EMD would make it way, way too tempting to look past issues in DD and close no matter what.I'd also be concerned about the ability to close in general if cash is too tight to fund even the EMD.

I have heard there are some local financial institutions which encourage investing in certain areas and are willing to provide some incentives.

Could you come up with 10% down and buy in a market that is over 50 miles from you and use the vacation home loan?

Also, I won't profit right now from rental income - only my IRA will profit (yes I know it's me later in life), but I want more capital now so I can pay down my private student loan faster and repeat the process with other properties.The place is 1 mile from the beach, 2 minutes to the bus stop, 1 mile to the train, and less than 1/2 mile to a new mixed use development that will open this spring (just the 1st phase) and it's a 20 - 30 yr mixed use project. 

Would a hard money loan be better without 2 years income or another way?

In my opinion, when an investor uses alphabet classifications, B class should be areas that are above median value, median income, primarily owner occupant and in financially stable areas.  38127 as an area is primarily below median value, income and primarily rental properties and definitely an area challenged for economic development.With that being said, houses in this area are not valued at $170,000 to begin with so expecting $170,000 in appreciation is not practical.