And the rates will of course fluctuate over the years.. but if they go up or down then that would apply to all.

That will most probably be offset by an increase in new mortgage costs and increased rates. 

You should consult with local property managers and find what the average DOM would be to lease your home and rental rates etc. this would be a good starting point. 

  - Rents in my area for a 3/2 SFR are 1,800 - 2k per month (probably closer to 2k for a brand new house); so the land + house cost is going to have to be below 200/220k all in to make the math work at current interest rates. 

You cannot choose a section 8 tenant over a market rate tenant.

You just can't beat the financing available, the rate is good but the LTV (96.5% on FHA loans) is unbeatable.

We bought the property at below market rate because the seller was motivated and needed to close quickly.

Be sure to ask PMs about the vacancy rate in the areas you’re exploring to help you run your numbers.

@Don Miller I'm glad you enjoyed your visit to Cape Coral, Don.

@Chris Pratt Since single-family houses with ADUs are not considered commercial properties, they are not priced based on income or cap rate.