Depreciation lowers taxable income now but is subject to recapture at a maximum 25% rate when the property is sold.

If you're using a DSCR loan to purchase the home, most lenders use the lower of the lease agreement or 100% of the market rent from the appraisal form 1007 to determine the DSCR.

There are some zip codes where you can indeed get above market rent with S8 (even after deducting utility allowance), but some where they are lower.

Maybe I got lucky because this was a few years ago and with lower prices and lower interest rates, it was easier to do well. 

Sales Tax Breaks: Construction materials and services may be subject to lower tribal sales taxes—or exempt altogether.4.

There's usually a good reason why the entry points are lower.

In my experience tenants on the lower end of rent tend to cause more damage than higher price tenants.

Often times if you lower the rate, the fees go up and vice versa.

Key Factors for a Good Seller-Financed DealCash Flow: Rental income should exceed monthly payments (PITI) by at least 1.25–1.5x.Purchase Price: Compare to ARV and market value for fair pricing and equity potential.Interest Rate: Aim for competitive rates; higher rates must still allow positive cash flow.Amortization/Balloon Terms: Favor longer amortization and align balloon payments with your exit strategy.Down Payment: Lower upfront costs reduce risk but should meet the seller's expectations.Flexibility: Seek no prepayment penalties and fair late-payment clauses.Property Condition: Ensure the property’s condition matches terms through inspections.Seller Motivation: Assess the seller’s willingness to negotiate favorable terms.Exit Strategy: Have a clear plan for refinancing or payoff at term end.Portfolio Fit: Ensure the deal aligns with your financial goals and risk tolerance.Vetting multiple deals and consulting professionals is crucial to making sound decisions.

There are significant advantages to investing here (lower barrier to entry, much better price to rent ratio's, etc. etc.).