And we know there is NOT rampant "bloat" in rent prices because if there were, it's also simple math that landlords would be rushing to create additional units to capitalize in that "pay day" right, because it's "bloated" rents, meaning over sized profit margins, which to be true would mean it's "cheap" to create new units vs the over sized profits it's producing.......

So if I were in your shoes I would want to be really confident in the exit strategy. 1) confirm rent estimates 2) confirm ARV and the demand in that area to buy a house like that in the price range 3) are there banks willing to refinance at the LTV you want with the seasoning period you have. 40k for a house of that size that needs that work would be the cost of materials alone where we live in WI, so verify your estimates.

Since Section 8 has a particular amount they allow for size of unit you should check that the amount for your unit size.

Purchase price: $400,000 Cash invested: $57,000 Type: Single Family ResidenceParking: Garage - AttachedStories: 2Bath: 3 Full BathsBuilding Size: 2,686 Sqft.Lot Size: 50,791 Sqft.Year Built: 2005

Does not fly.And if you claim that you only spend 20 hours a week for your W2 job, an IRS auditor will request a confirmation from your employer.

I cannot see how build two, say, 1200 sq ft houses with two roofs, two foundations, presumable about 25-30% more windows and siding is going to be cheaper a duplex that might have a little extra fireblocking and soundproofing.Now, maybe your GC is thinking that detached homes tend to get higher rent than comparably sized and finished duplexes.  

Self employed here, average $3k for prep and pay 37% effective tax rate.

Do any of you currently employ water submetering in your Pittsburgh properties and can recommend a product and/or plumber?

I'd reduce the size of your units and stick more to 1 bed and 2 bed than what you have the numbers aren't really looking good on this deal. 

Bathrooms will take normal size tub/shower and smaller single vanity.