I explain they will have difficulty renting a quality unit, that I will ding their credit, that I will attempt to garnish their future income to recover what they owe.

Disclaimer: I'm probably biased because I've lived in Indianapolis for the last 5 years :)If you're set on BRRRR, I'd recommend higher-quality neighborhoods in suburbs of Indy like Zionsville, Carmel, Fishers, Noblesville -- they tend to attract higher-quality residents have less crime, and have less surprises than some of the 60-100 yr old homes inside the I-465 loop. 

On top of that, the tenants are lower-quality, so it takes more work to maintain communication, enforce the lease, etc.In my experience, the additional work and eventual losses erase any benefits of Section 8.

Would you care to share the names and contact info for people you may have utilized to make the returns visualized in your post available?

Are their listings detailed with good-quality photos?

@Marc Shin we use both granite/quartz and laminate in rentals depending on the size and rental quality.

You're flipping the property to rental quality, creating a SOW, hiring contractors, or swinging hammers DIY to get it done. 

My niece moved from Redwood City to Seattle and was always complaining about the smoke and air quality, even though I don't think it was that bad  Ya I grew up in Silicon Valley and Redwood city is half way from San Jose to SF.

@James KieferRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Since it’s such a quiet and family oriented neighborhood, I would like to be mindful of the quality of residents that live here.