Quote from @Edward Barrett: New investor here trying to stay in my local market (Dayton, OH).Since I've started looking for my first deal I've come across a few section 8 properties that seem to pencil, but I'm a bit loath to jump into that kind of deal.

I suppose if I'm trying so hard to make it make sense, it probably doesn't. 

I will try the other avenues that you have suggested.

Looking for some input...I'm working on educating myself more when it comes to various tax benefits and trying to decide what would be the best route for me moving forward.

I normally try not to work with people like you because your expectations are unrealistic.

Though they are currently trying to bring it back.It basically amounts to legalized extortion. 

I'm leery of high leverage until I get my feet under me and some experience, so I'm aiming at smaller deals to learn the process before trying to hit a home run.

I’ll cover a few of those for you as well as try to offer some advice.

Im trying to force the appreciation to do a cashout refi and pay of the entire loan and pull out possibly 100k.

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.