My son currently lives in the townhouse b/c he is going to school and works in the area.Since he is young and starting out in life, I would like for him to only cover the basic costs (taxes, HOA, utilities) just enough for me to break even (I believe that will put him slightly little lower than market rent rates). 

The property is in a great location,  close to stores, restaurants, fair grounds, freeway access, and less than a mile from hospital.

and 5 years is a long window for things to change in ways we don't expect (lower interest rates maybe??).

My goal is to diversify with an investment that generates steady cash flow, even if it requires a larger upfront investment and lower overall returns. 

Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and it's super landlord friendly (so you will never have to go through a 12 month eviction or anything close to that!).

Rents have been pretty close to what the housing authorities advertise, sometimes even a bit higher.Fort Wayne’s a solid spot with low taxes and good cash flow—definitely worth looking into.

A HELOC offers flexibility and lower interest rates, which can be ideal if you’re looking for short-term financing with lower payments during construction.

Quote from @Gregory Schwartz: I have 2 very close friends who grew well beyond 2 rentals with this strategy. 

Can you do the lease renewal, but have lower rent for the first month and then increase it the second month (if that fits with 60 days' notice)? 

It is often much lower than rent O meter because rent O meter is pulling data from the advertised price, not the rented price.