The typical income from a free and clear rental would probably be $800-1500/month - and on a financed rental probably $300/month on a good day in today’s market.  

I would definitely focus on market growth oppose to finding a cheap property.

What markets + strategies are you thinking of pursuing?

This will be costly in today's market and interest rates, but might be worth a shot if they can afford to stay.If they don't want to stay and you want the the townhome to rent to someone else and just want to assume the loan, well then she can call the lender and see if the loan is assumable. 

@Lori Edelman if you want a better experience, in a better market (Detroit), DM us please.

I got the property off-market for $250k from a trusted family friend.

But to your point, a current project I’m about to start, I can tell you I had to push back on ARR as the comps used by lenders were entirely outside of what I’m bringing to market.

(We had already given them a reduction on the sale price under market.) 

I have quite a bit of experience in the Detroit market and even have a few Section 8 tenants myself.

There is a flaw in the business model and thier internal processes need a lot of work.First the good,Yes, I got paid every month.Nomad found me good renters.Next the badDue to needing to make the guaranteed rent they rented my unit below market valueIn communicating with Nomad they were disorganized, often sending conflicting messages and not alignedNomad offered to find me a repair company, that compnany charged $400 for a $25 dollar part and I was stuck with Nomad saying "not their problem" and the vendor saying Nomad was the client not me.Nomad was horrible to my renters as their property management term ended.