In fact, approximately 40% of our business involves the Section 8 program.40%...

Maybe that is gross profit when you sell it, but what about the cost to build it?  

The issue is you cannot force insurance companies to do business in the state.

Or if you want a lower monthly payment, then do the 20% down.You can also negotiate credits with the sellers to use towards your closing costs or rate buy down.

3) Your $250k with 30% down => about $750k (you also need funds for closing costs, taxes, etc.)

My goal is to wholesale some properties single and multifamily to build some capital while fixing my personal credit and building my business credit.

The primary risks at this point would be       1) to your lender, the risk of a margin call.       2) To you; underestimating the true cost of a project and cost overruns      3) To you; legal risk of securities regulations if you partner looses money. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

It was a huge investment, but it cut the electricity cost by the full 2K per/mo all summer.

I wish you the best of luck building your business on another platform.