Minimal disruption to the existing flooring in the home and the landscaping in the back yard.

If I'm willing to invest in the right mentors, analyze deals,  and be educated with investment, the risk is minimized.

My view was that if I was going to do Sec 8 again the house would really have to be rehabbed with their inspection process in mind to minimize the impact of their inspections.

You could put in very minimal cash and spend your capital on repairs to do a house hack flip. 

Stands to reason their motivation to sell with minimal hassle is high at that point in time.

Take out a HELOC or HELOAN & use the minimal amount you need for a down payment on your new primary residence.

The LL is in the wrong, but you have been minimally harmed (some lost time and effort, maybe application fees).   

If the borrower defaults then we own a property minimally valued at $1,700,000 while owing about $635,000, or equity of $1,100,000!

I did it for almost 5 years with minimal issues back in 2010's.

I'm matching the terms you have above... it may make sense to look at a 3 year Prepay instead because the adjustment is minimal usually.Lender 1: 7.25% With 2 Points Up Front or 7.99% if you want to do a 0 Point Loan.