This provides an excellent opportunity to purchase properties, make light renovations to increase both rental income and property value, and optimize cash flow.

The value add was recognizing what the current regulations could allow the land to be used for (basically recognizing current land use did not optimize the value).Good luck

I would stop short of saying I found the inflection point of optimality and being pragmatic. 

To scale, replicate this winning formula in similar markets, optimize operations for Section 8 tenants, and consider networking with like-minded investors to uncover new opportunities and partnerships.

I’d love to hear your thoughts on whether this approach makes sense or if there are other strategies you’d recommend to optimize profitability.Thanks in advance for your advice! 

Does this matter if you're not optimizing for building a ton of wealth to pass onto kids? 

I have done BRRRRs in Milwaukee for a decade+ and if I am not on the job 2-3 times a week, things go sub-optimal.

Still there's more risk than a house hack which is probably your optimal strategy.

@Nick Am Setting up a management S-Corp (LLC-B) to manage properties owned by your LLC (LLC-A) can provide tax benefits like retirement contributions, payroll tax optimization, and deductible expenses (e.g., home office, health insurance).

Always keep an eye on interest rates to optimize cash flow and return on equity. if you switch to long term hold investing, you'll want to see if equity stripping is a strategy that works for you.