However, with a SFH you will lower your standards when vacancy arises more than one month as you have no income coming in to male that payment.  

You likely only made a down payment of 3-20% ....but you still get to write it off on the full value across 27.5 years.So 400k/27.5 = 14,000 ish a year of a write off where during the year you didn't need to incur an actual expense, no cash outflow. 

It’s essential to screen tenants carefully to minimize vacancies and ensure reliable rent payments.4.

You should find out what percentage of the rent is being paid by S8 and by the tenant.Tenants have to sign the rent increase and some won't because they don't want their payment portion increasing.It's also highly unlikely a S8 office will approve the huge increase from $797 to $1300.- BTW: the $1300 includes all utilities being paid by the landlord.

These programs offer options for less money down and in some cases DPA - Down payment assistance.As a banker for over 18+ years I am very skeptical when I hear a new name in the business only because its become tougher to lend with all of the new laws and credit/insurance requirements and regulations.  

It will give you a lower interest rate on both properties because you bought them as owner occupants, and it will require less down payment to get into. 

However, finding properties that would cash flow with a 20-25% down payment on 400k property has been challenging.

For example, the buyer, if they find problems with the property or stop making payments, can blow up the seller's credit.

The key will be to set up terms so your monthly payment works.

If you sell, you could access the equity you’ve built and put it toward other investments or save for a future down payment.