We have chosen one municipality to do Section 8 due to the relationship we have established with the director, case workers, and inspectors.

I'd recommend staying within 10-15% of the median priced home because that's where the most demand will be not only for renters but owner occupants as well. 

These things happen, just make sure you document as well as possible.

Well, I guess this says it as well as I could.This growth in ADU establishment goes hand in hand with progressive changes in Michigan's zoning laws.

Since you'll be investing out of state, establishing a good team will be crucial.

If you have a lot of family in OK, that can be a great place to start assessing since you have dedicated boots on the ground, as well as a reason to visit.Don't overthink the analyzing of markets when you are still figuring things out.

@Toby Fellows I feel ya as I am mainly an investor as well but also hold a RE agent license.

He's lived in Japan a few years as well (Fukuoka, I believe).

Is the higher price agent inflating to get the listing or is the lower price agent just not keyed in well enough in the specific neighborhood? 

Typical cost for the setup would be in the $15,000 range which would include production of the Private Placement Memorandum, Subscription Agreement, and Operating Agreement, Investor Qualification Forms, as well as filing Form D with the SEC, and state “Blue Sky” filings in those states where your investors reside.