However, any tips on next steps are welcome!

You have a decent loan on the place that you won't be able to replace from a cashflow standpoint.So keep at it. 

Purchasing replacement property from a related party is typically prohibited except in very limited circumstances as outlined in I.R.C. § 1031(f)(2)(C). 

I did have to replace a dishwasher early on and the stove but since then, zero appliance failures.

The HUD guidelines suggest a certain rent amount, but after inspections, the figure came back significantly lower than expected.Additionally, do you have any general tips for working within the bureaucracy of the Section 8 program?

Negotiation tip #47, make it as simple as possible for the other party to accept your terms.

They often pay out replacement cost value (RCV) for damages.DP-3 (Special Form): The most comprehensive DP policy, DP-3 offers "all-risk" coverage for the dwelling, protecting against all perils except those specifically excluded in the policy.

Be ready for a wealth of information at your finger tips.

Replacing the roof is just the start.

What can go wrong, how to prevent those things from going wrong in a JV and tips for ways to solve those problems when they do go wrong.As a JV money partner, those are the most important issues.