If my target would be low income residents, are there any grants, tax credits, or funds available to help me with the conversion? 

Additionally, since my parents are nearing the retirement age, I'd like to prioritize low-debt, high-cashflow deals.

They must be very low odds because insurance companies are in the business of making money, not paying out maximums.

Avoid surfaces that can stain or feel cheap like low end LVP.

Prices remain relatively low, but appreciation may be slower.Monroe: A mix of cash flow and appreciation potential, Monroe has become a popular choice for investors, especially in areas where new developments are popping up.Appreciation-Focused NeighborhoodsBallantyne: A well-established area with high demand, Ballantyne offers excellent long-term appreciation potential, though cash flow opportunities may be limited.South End: A booming urban hub with a vibrant retail and restaurant scene.

High demand and still relatively low entry costs. 

If after interest rates spiked a buyer waited for them to drop back to 7%, they would have waited 21 years til 1993 for them to get that low again.Hope he isn't holding his breath.

Rates that low don't make sense especially if they're a no doc shop.

Rates are high, usually in the high 8s or low 9s, and you may pay 2-4 points on the loan. 

I've seen some as low as 6k and as much as 14k annually.