Just be mindful that you can't 1031 a personal residence but it might be eligible for capital gain exclusion from section 121.

If you go into A/B Class the rents are going to be too high to justify doing section 8, meaning market rents are higher than Section 8 is able to pay.If you go down to D Class areas you're going to attract terrible tenants and it will be a nightmare. 

You can go straight down on one block and straight up around the corner.

It’s in the expense section.

In your case, changing the property from a rental to your primary residence constitutes a change in use.The depreciation recapture will be calculated based on the fair market value of the building at the time of conversion, not including the land value.Since you're tearing down the existing structure, the entire amount of depreciation taken over the past two years will likely be recaptured, as the building's value at conversion will effectively be zero.The recaptured amount will be taxed as ordinary income, up to a maximum rate of 25% for residential rental property (Section 1250 property).

Texas does have specific rules regarding home equity loans and cash-out refinancing (often referred to as "Texas Equity Section 50(a)(6)"), but these don’t prohibit homeowners from using funds for investment properties.

Includes a single family home (4 br) which was divided in two sections one of which is being rented.

Your reading of that section isn't exactly what I would take away.

You could try typing developer on to the search magnifying glass in upper corner.

The BiggerPockets meetup section and Meetup.com can be great places to start!