And most nurses don't understand the added cost it takes or a land lord to provide this type of rental, that all have in their mind that all land lords are rich.

The town home would cash flow ~$200 after expenses (and is near new/low risk of large capital costs). 

However, I'm not quite sure how to evaluate a home as an investment since the up front costs are so much higher and the mortgage terms are so different. 

There are a lot of key metrics that support Indy being good even for the next couple of years like cost of entry, availability, population, etc.

I also switched title to a trust with a quit claim deed and the cost to record is only 39.00 here in Illinois.  

Those two items added $6850 that included labor costs to our renovation costs.

Finally, how can I estimate the costs for repairs?

This is a possibility for me due to the low down %, although I’d need to include closing costs and other fees.Conventional 5% downThis seems like a possible better option due to the lower PMI payments and potentially lower rate.

Another consideration would be to look at it as a start-up expense if it's regarded as a trade or business (can deduct up to $5,000 immediately for eligible start-up costs).

The odds that anyone on Section 8 can become a home owner may be OK in a low-cost market, but the odds are ridiculously small in Austin.