The seller dug out the basement to increase the ceiling height which required  underpinning.

For example, could this potentially be a cash boom opportunity within the adjacent areas such as Kenosha and Mount Pleasant where one could buy low, sell high within a relatively short amount of time through appreciation, or would the presence of Microsoft increase cash flow in those areas?

These types of properties are easier to come by, often better priced, and can increase your overall rent for the property. 

So I think one thing you might need to add to your calculations is the projected value of the house over time and any anticipated rent increases.

Quote from @Michael Chalke: Unfortunately, Section 8 increases must be approved by HUD.

  - Options- increase rates and make more cash/profit. 

If it is less than 3 you are doing it wrong.Also, you should think about doing a light renovation and increasing rents.

But the insane tax increases in Jackson County, Missouri (Kansas City) were deemed illegal:"Missouri’s State Tax Commission ordered Jackson County to roll back its 2023 property tax assessments, which raised homeowners property assessments by an average of 30% and more than 100% in some cases.

To me that expense would negate the increased profits of STR, which is the whole point of STR. 

Between principal paydown and home appreciation, you’re still likely to make at least 40k per year, with that amount increasing to 46k in the second year and 52k in the third.To make this a worthwhile deal, I think you’d need to hold it for at least five years.