Our Private investors will fund the remaining 10% of the purchase price, the first portion of the rehab (to be drawn later from the HML), and the holding costs. 

But I digress…I am feeling hopeful that government can get its butt in gear and make meaningful change, both in size and complexity, with help from both sides of the aisle.

You can also depreciate the rental portion over 27.5 years.

House hacking is out of the question, I have two young children and a wife who will truly think I have lost my mind if I suggest we move and / or rent out a portion of our house.

The ideal home price for you will depend on: 1) downpayment size 2) risk appetite, 3) preference for more cash flow or appreciation.Given our price points, our investors need to have 35-45K to start, on average.The typical cash-on-cash return on our properties net of loan payments, insurance, taxes, and property management fees is 6-8%.Ultimately, you can obtain financing from any lender, although we have partner lenders that can provide very competitive rates.

I'd like to know where the other really big markets are, because one size doesn't always fit all.

I would look for a bunch of Sub To Deals with 2-3% interest rates ...... then rent out for cash flow and huge equity build up when rates are really low (check out amortization schedules and compare 2-3% vs 6-7% with the same balance and length of time - check out the principal portion each month - the lower the rate the higher amount goes to principal PLUS better cash flow).

I have 5 section 8 tenants and each one is very blasé about paying their portion.

It does later say in the agreement that it is:"binding upon persons who own, lease, sublease, or occupy any parcel or portion thereof"The inclusion of which seems to imply that long term renting and/or subleasing would NOT be commercial use.I'm trying to figure out if I'm taking a significant risk buying this property for use as an STR.

Your best bet for that size will be local banks and credit unions, good luck.