But I think your really limited to areas it will work in frankly. 

The trifecta is making the owner and property manager happy, compensating for the extra risk, issues, and potential repairs, and encouraging the resident to limit the number of pets and be sure they are not damaging the property. 

Buying one-for-one equal to or more than selling property sale price limit the choices.

On the other hand, I could hold on to the property with the thought that I can handle the expenses of keeping it, while continuing to pay off considerable equity and gaining appreciation for each year I hold on to the property.I would love to hear everyone's thoughts on what is the best option, as I have been having trouble making a decision given my limited knowledge and experience. 

We've limited down our options to a handful of places.

Sure, there are limited exceptions but the investors in your shoes are not equipped to identify those limited exceptions.

I forgot about the fact I can have two homes as long as it's under the VA limit.

The Taxable Value is uncapped and equated to the SEV upon a sale or other transfer of property ownership, with limited exceptions.Homestead versus Non-Homestead Millage RatesCounties & cities in Michigan are allowed to set their own millage rates, with one restriction – a primary residence (Homestead) is exempt from up to 18 mills of school taxes on their Homestead property.

Most lenders have a limit to how many draws you can take from your rehab budget and often it will cost a small fee (you can include that in your budget) so you'll want to confirm if/ what their limit is should you expect to be taking a lot of draws or complete the rehab in smaller increments.

No UBIT on leveraged real estate.  10x higher annual contribution limits.