The investor would front most or all of the down payment, but in theory he, she or they would not have to think about it from there.

Part or all of the rent is covered by the US gov't (take that as you will).

Something to consider to is that if you are able to refinance after the addition and pull out some or all of your new investment and the cashflow still makes sense then by all means I think go for it.

With a lease many times over time landlords are not formal and communication is oral, txt, email, etc.

YES, you can get the work done for less than this on occasion, in particular if you are doing some or all of the labor yourself, not pulling permits, or purchasing stolen materials as a starting point. 

Your tenants cover most or all of your mortgage.

Are there going to be banks involved, creative seller financing or all cash? 

A good deal is one where the rent covers most or all of your expenses.

If the ARV has risen to $260k and you’re renting it out for $2900/month, you can likely qualify for a higher loan amount.Here are some key points to consider:Loan-to-Value (LTV): A typical DSCR refinance will allow you to borrow up to 75-80% of the property’s ARV, so for a $260k property, you might qualify for a loan of $195k to $208k, which could help pull out most or all of your original investment.Debt Service Coverage Ratio (DSCR): Since you're renting for $2900/month, the loan payment will need to be covered comfortably by that rent.

Organizational Delays: Section 8 offices are often overworked and understaffed, leading to slow processing times for new tenants, delayed rent increase approvals, and poor responsiveness.Benefits of Section 8:1.Long-Term Tenants: When you get a good tenant, they usually stay for a long time because of the tedious process required to qualify for Section 8 housing.2.Consistent Income: If Section 8 covers most or all of the rent, you typically receive reliable monthly payments, reducing the risk of non-payment (as long as there isn’t a large tenant portion).3.Lower Barrier to Entry: Because properties in these areas are often more affordable, it’s a good way for new investors to break into real estate without needing a large amount of capital.Overall, I’ve seen the good and the bad of this strategy.