I would bring up the occupancy with the caseworker in case they are not informed.

My next goal is to implement the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method, specifically in Birmingham, AL, and focus on Section 8 properties.With relatively good rehabs, I’m not looking to be a "slumlord"—I want to provide quality housing for tenants while also ensuring my investment is successful.I’ve heard mixed reviews about Section 8 tenants, but I’m eager to learn more.

Thank you Marelyn for the information.

And the rules surrounding replacement are much more relaxed.  

Personally I always recommend replacing the utilities if they are older, because they become much much more expensive if a tenant is living there and you need to replace same day.

Through my journey I have gathered priceless information about the markets and maintained countless of connections including contractors, investors, agents and brokers.

Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

This can be helpful if you expect your property to become profitable soon.Save It for Later: If you don’t use it this year, you can save the depreciation for future years when you have more rental income.

Since the DST uses cost segregation, your depreciation breakdown appears correct, but the calculation is little more involved than this.

We are starting out with flipping because, as @Mohamed Youssef stated, we would like to build up a bit more capital.