Landlord determines the amount they want coverage for, typically the same as a traditional deposit. 

This makes it to where I will not qualify for a traditional loan.

The Pro-Rata rule applies if your Traditional IRA contains both pre-tax and after-tax contributions.

The tax benefits are also great.Where interest earned from lending personal money is subject to ordinary income tax rates, interest earned in a traditional SD 401k retirement plan is tax-deferred or tax-free through a Roth SD 401k plan.

These traditional value add opportunities have worked just fine for us and would have continued to have performed well for us.  

Management of section 8 will cost more than traditional management so keep that in mind as well.

It is a personality type.This is also why when I stay in hotels I choose Hilton properties so I can bypass talking to the front desk and use my phone to check-in and open the door.  

I'd recommend closing on a 2-4 unit property that needs some work but would still qualify for traditional financing. 

I wonder that anybody from out-of-state investing in the KC area want to turn their traditional rental properties into short-term rentals?

Since you'll be living in one of the units, you can qualify for owner-occupied loans, which often have lower down payment requirements and interest rates compared to traditional investment loans​