I used my tenant income and w2 income to put towards the next phase of rehab.

I've never heard of a lender that wouldn't count Section 8 payments as income.

Especially in today's high interest rate environment, a low income buyer is usually going to be better off renting than buying.

Further context, I have zero debt, high 700s credit score, one other investment property here locally. 175k in cash available, looking to do DSCR loans or cash and then refinance.Peoria, Illinois- Great need for lower income housing, market appears to have many options.Lawton, Oklahoma- Looking only at extremely cheap properties, as it seems it’s not terribly hard to find renters.

You both have W2 jobs - so you're likely not a Real Estate Professionals - so these losses will be passed on until they can be deducted from other passive income in the future.

Owning an asset is never a bad idea, especially if it's income producing.I would speak to a CPA about using cash from a WLI policy. 

So yeah I am currently learning alot on how to "equity stack" as Kai calls it on deals, bascially multiple streams of income from 1 deal.cheers yall!

You may be required to make estimated tax payments when the property sells.It depends on what your 2024 total taxes due were and 2025 estimated total taxes / withholding / estimated payments are.If you pay in atleast 90% of the current year tax or 100% / 110%(Depending on 2024 income), you are normally considered good.You may want to consult with an accountant for more clarification.

Listen to Brandon Turner's podcast where someone he interviewed shared how this made a HUGE increase on her income: https://open.spotify.com/episode/1bS4eL80KL1rWY4vyCMjXh?

It can still qualify if it's a fixer-upper, as long as the rental income from the property can cover the debt service.