The seller will always retain the equity and would receive annual distributions - and could structure the agreement with an exit strategy that makes them comfortable. 

If MTR is a good strategy you will further increase your cashflow.

Quote from @Stuart Udis: @Danielle B What data are you relying on that suggests Section 8 leased properties provide for better returns than other investment strategies?

The two are almost entirely different markets in terms of price points, returns, tenant quality, and overall investing strategy.

Sounds like you’re in a strong financial position, and it’s clear you’ve put a lot of thought into your strategy. 

Any strategies beyond this would be appreciated.

I'm a 2x house hacker here in LA (a case study in the BP book The House Hacking Strategy) and an out of state investor.

They must satisfy "material participation" test for their STRs to utilize the strategy.

However, co-living allows you to acquire properties with as little as 0%-5% down, drastically reducing the amount of cash required.Instead of needing $100K+ to buy a rental, a co-living strategy lets you start with a fraction of the cost while achieving higher returns.3.

Outline a clear exit strategy to meet your long-term goal of retaining the property for cash flow.Work with a CPA to ensure tax efficiency, particularly around depreciation, capital gains, and partnership income.