I only have 4 SFR with sec 8 but I’d highly recommend it.

Our home state, TX, has really high property tax which is see as a big disadvantage.

Just wondering how many folks would really use this that are like I said not really educated on how title and escrow works and I find East coast folks to be highly reliant on closing attornies and have very little knowledge of title and escrow functions..

I guess my question is this: is the very low cash flow (due to my low down-payment and high interest) going to improve?

Quote from @Jules Aton: If you are doing high grade laminate that should be good.

Low vacancy rates, rising rents, and high tenant demand for more space/good school districts. 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

So if your replacement cost valuation on the policy is not high enough to actually rebuild the property (oftentimes this is the situation when contractors are charging premiums because they are so busy with other losses), and unless you are personally willing to pay the shortfall to rebuild the property, the insurer will only pay you the depreciated (ACV) for your loss.

It is much more difficult to sell an entire portfolio that has become uninsurable (which would require a cash only sale) or that insurance rates are so high that no one wants to buy. 

high prices have made properties expensive and high rates have made money expensive.