If Mr Murphy shows up (which he will, 100%) and anything goes wrong (which it will,100%), you are just going to lose money.

Size it appropriately so that f you lose you’ll live to fight another day.  

So you as an owner, would you be willing to ask for less to have your property rented quicker and "lose" the extra $1200 or so per year or would you rather lose that $1200 per month because your property is sitting vacant.In regards to demand, Cleveland is one of the top Sec8 markets out there. 

The question I would ask myself would be is the $175 worth losing a tenant?

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

if the wholesalers actually follow the law and make those disclosures and the sellers are not completely devoid of real estate knowledge those who wish to wholesale are going to spend a bunch of money only to lose the deals in the 11th hour. 

This situation can compound to you doing more jobs and getting more capital for the next deal, but then losing sight of really why you got the license which is saving money on flips and doing more of them because the margins are so great for you being licensed.

If you move your primary residence, he will lose yous tax advantage on the investment property. 

You can target low equity homeowners which are in foreclousure and will lose theitr house to the bank because they can't make the payment.

Many investors are attracted to lower price points but end up losing money because cheaper properties are higher risk (not good locations, rough tenants, lower quality construction, etc.).