So first, I'll answer your question then I'll tell you what I would do if that matters or you care.1) I don't see a need to choose one or the other. 

People who get evicted could care less about a judgement or the collection process. 

Smoky Mountains seems to be a solid choice but I wonder about oversaturation and competition in that area?  

If the pipe is 50 years old and had a life expectancy of 30 years, they're going to argue it was due to lack of care on your part and try to deny the claim. 

Pros - guaranteed rent, tenants stay longer on averageCons - more mgmt needed (lease violations), they tend to not take great care of properties (increase maintenance expense or deferred maintenance)

Rehab Loans do not generally care about your DTI or your income.

Was wondering if anyone knows a guy/girl that can't help me acquire sed property off market for a better price. 

Quote from @Amy Smith: Be careful you don't get in too deep.

They are also ensuring the staff is fully trained on how to disallow cost segregation for those that haven't been careful and conservative in their analysis.

I personally used a 40k ADU grant with CALFHA HPP Cares that covered a chunk of the cost.