I truly believe Wilmington gets a bad wrap and the perception is much worse than the reality.

https://www.biggerpockets.com/blogs/9232/55313-intro-to-section-8---your-perceptions-vs-my-realities

@Ryan McEniff - I wrote a blog on the topic that may be of help.https://www.biggerpockets.com/blogs/9232/55313-intro-to-section-8---your-perceptions-vs-my-realities

or are banks in your your area less sophisticated ?

I do a lot of SEC 8 and wrote a blog on the perceptions vs realities because I got so tired of typing it over and over every time someone asked.  

Ask yourself if the person recommending over- sophisticating rental houses benefits by setting them up for you. 

SOL is a sophisticated investment term meaning “sh*t out of luck”.  

There is a perception that cap rate determines value so we need to study and watch cap rate.

Clearly, this owner was trying to recoup 100% of the amount spent but I believe any sophisticated tenant would not have agreed to pay more than their allocation of the GLA.

While you can't necessarily force appreciation by driving up NOI, you can often find better deals as sellers are less sophisticated than commercial sellers and you are eligible for residential financing which has owner occupant options of low down payment and interest rate.