I used a hard money lender that would finance 100% of the purchase and rehab so as to not eat up bit a couple grand of that 43k. 

If you don't fall within that category you either get caught up dealing with the BS minutia of the business or are reliant on outside PM's that eat away any margin because there is significantly more time that goes into operating Section 8 rentals and don't let the "guaranteed rent" make you think otherwise.  

And lower income means food eats up a higher percentage of income, so rent has to be a lower lower piece.But even beyond that, when you are in very low income areas, even trying to push a $20 rent bump is disproportionately high and will cause a tenant to move. 

The firm's fee will probably eat 1/4 to 1/3 of your savings.

They do not always.....sometimes people have to eat some of the cleaning fees to avoid turning off guests. 

That means not traveling unless necessary, less going out to eat/drinking and avoiding unnecessary expenses of all types till your HELOC and CC debt is close to nothing.

If that means a second job or eating noodles every night, so be it. 

It’s all about finding a balance that works for everyone involved.Regarding closing with short-term private money, it’s an option, but you’d want to weigh the costs and ensure that it doesn’t eat into your profits too much.

I would agree that the best way to manage this situation is to forgive any late fee incurred and eat the NSF fee as well this one time.  

Once you transition one of the homes into a full time rental you will reap that benefit by filing a schedule E at the end of the year.There are a few loopholes to consider like calling one home a "Vacation/Second home" which allows you to pull out 80% LTV with a better rate.