The big deals will be vacancy, capex and appliances. (3 water heaters, stoves, fridges, microwaves?

A few things to keep in mind:Section 8 requires the property to pass an inspection based on HUD’s Housing Quality Standards (basically making sure it’s safe and well-maintained).The rent you charge has to align with Fair Market Rents (FMRs) in your area, so it’s good to check what similar properties are renting for.You’ll still be responsible for maintaining the property, but the upside is that a chunk of the rent is guaranteed by the government, which can provide steady income.Check with the local housing authority about any specifics for your area—every jurisdiction does things a little differently.This could be a great niche if you can find a good deal on the land and make sure your expenses (like maintenance, insurance, and occasional vacancies) are covered by the rental income.

I decided to purchase property in Pennsylvania where properties are more affordable in certain parts, demand is relatively good (less vacancy), healthy cash flow, and tenant laws are more favorable to the owner side in case your tenant stops paying their fair share. 

Purchase price: $925,000 Cash invested: $200,000 13 Unit Multifamily property in the Waveland neighborhood of Des Moines, Iowa. pre-acquisition: 7% under MR and 15% vacancy/bad debt.

Analyze cash flow, potential vacancy rates, and maintenance costs before making a decision.Secure FinancingTake advantage of owner-occupied loans such as FHA, VA, or conventional loans, which often have lower down payment requirements.

Also , normally I keep 5% as vacancy rate , but for this case I did 4% as its a desirable rental areaIs 7% expense conservative for such townhomes?

If that's right, then your NOI (assuming no vacancy) is around $45k.

If you're trying to fill the vacancy as quickly as possibly you should price ver  y competitively.

So not only is the $1500 pulling down the principle of the slightly higher interest rate loan (not to mention the less interest of the 25 days with $5000 sitting on it), but also my emergency funds for vacancy, repairs, maintenance, taxes, insurance, future vacation funds, and Christmas budget would sit on the HELOC and therefore the principle comes down.  

Property was about 7% under market rent and has a T-12 vacancy of 12% before acquisition.