Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years.

I think we covered this in your other threads. 

I had asked them multiple screening questions prior to the showing and then toward the end of the showing and out of nowhere they asked if they could receive a discount on the first month's rent so that they could buy new furniture... living room, dining room and bedroom sets. 

The current lease rate barely covers the loan in which I will need to refinance out of soon. 

Should the strategy be to try and find houses at prices and rehabs that give a value that you can get in cheap enough that your rent covers the mortgage?

Sounds like you've got it covered, but if you have still have built up PAL, that is great for offsetting your tax liability when you sell. 

Go to BUILD YOUR TEAM at the top of your screen and you can search for other MEMBERS or LOCAL MEETUPS.

We find a lot of tenants with section 8 but many don’t cover 100% of the rent. 

I’ll have to see if it’s a good market (unlikely to depreciate) from what I see I will still have to probably pay some rent to cover the mortgage in this area, which is fine, but I want to make sure the home will appreciate too, thanks for taking the time to answer! 

It all depends upon the total cost of construction, based on that your monthly fixed cost/mortgage will come into picture.You cannot rent too far from market rate, essentially you should have some spread between mortgage(construction cost) and rent to cover for cashflow, vacancy etc.I would suggest you to keep the selling it out as your second exit strategy if renting is your first one. in that case your construction cost + selling cost cannot be more than market price of new construction.You can also try to reach out to developers to give them a piece of the pie but then you will have to sell for sure.