Another variable in the amount of rent that a Section 8 tenant can pay is HUD limits their rent payment based on the amount of their income. 

I think it is fair to say that there is somewhat of a tradeoff between markets that provide positive cash flow on day one and relatively high appreciation-based markets.

Diversify and leverage the best strategy based on the specific deal.

Do you know what you are doing based on actual practical hands on experience?

I know real estate is a long term play but you never know when you'll need access to that capital.There are turnkey companies out there that handle the entire process for you from top to bottom so it makes for an extremely passive investment.

Right now, I'm doing a lot of research and trying to build a good base of knowledge before I dive in.  

It's a GA LLC, but we're based out of CA. 

If someone you don't know reached out to you to offer you a loan and you do not know them, they are essentially acting as a hard money lender (lending based on the hard asset and not a prior relationship they had with you)."

Based on my calculations, even with a low down payment, I can achieve positive cash flow (with aggressive enough house hacking).

ASSET BASED LENDINGNote: Hard money is defined as average loan size under $2M, average loan hold duration under 2 years, and not a bank.