As I'm looking over their explanation I notice that I am being charged 8% of the rent received from CMHA. 8% from the rent the tenant pays and another 8% of the water bill which the tenant pays. 

If they are low balls then usually you are asking someone to work for free as the fix and flip landscape is competitive for a low pay out.

Its a small investment to try both as one deal pays for them for a good amount of time

Additionally, the supply of homes for sale is constrained because of this and will be for some time putting upward pressure on prices in most markets.Thinking about renting your house in Seattle would be wise as someone else will pay the mortgage down, and rents and the value of the property will go up over time.

Now, you need to figure out how to find deals and pay for them.

If so, adding amenities that your ideal guest will find valuable = they'll pay more for it.

I definitely would pay attention to key macroeconomic stats such as population growth, job growth, and where companies are moving/developing.

Homebuyers will always pay more than a REIT type investor.  

Also, if the capital gains are reinvested in real estate inside the country you won't have to pay any tax.

This leaves you with having to pay tax on the FFE allocation anyway.