Typically, the initial upfront for the rehab is either cash or a high interest loan (hard money or private). 

The risk to my business is much too high just so the agent can make a little more money on the transaction. 

I HIGHLY suggest you connect with a local expert such as @Josh Green.

It provided loss of use coverage and high liability limits but at less than 50% the cost of the quote I got from Proper.

On the flip side, if you've got a bunch of Section 8 tenants living in a building that's in a neighborhood where a lot of the tenant base has good jobs, high credit scores, and are generally reliable people, you've got the most risky tenants in that tenant base and that ain't what ya want.

By the most important thing (if that's what you're doing) is to have a really good operator who knows the laws, has experience and is above board so they won't leave you high and dry. 

Upgrading countertops to granite or quartz, installing high-end appliances, modern cabinetry, and stylish fixtures can significantly raise ARV.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

I was talking to a RE friend.He said it's a bad time to buy* rates are high* homes are expensive in most marketsLooking to hear some counterpoints. 

We’re really best suited for those high income earners out there with strong investment experience and cash positions to literally take the reigns and create a strong cash flow product and tax write off for them with minimal time spent on their part.