Just lower the rent.If it's in the ghetto, yes, you definitely want to be using Section 8.

Not sure why you would refinance a lower interest primary loan into a higher interest DCSR loan.

You need to lower the price. 

Yes, I am fortunate that a lot of the properties are 3.75% or lower, but I do have 4 above that, and all with mortgages under $140 K. 

Only threat is that interest rates go up instead of down; however, the federal reserve has been very clear about rates going down and have already started lowering rates. 

"Better" can be defined in terms of risk and return.Risk - You told us nothing about the investment nor GP, so it's impossible for us to really comment beyond lower risk might be better.

If the violator is an adult child it's a lower risk because the voucher holder just has appeal and to prove the felon moved to another address to be reinstated.  

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Question: If the rate is .625% lower and only saving you $100 net a month, what is your loan amount? 

Everything is relative.As for the market value, in six months or a year, it could be far lower than it is today.